Technical Notice

FINRA Will Begin Requiring Factor to Be Reported in Specific ABS Trade Reports

May 7, 2013

On Monday, July 22, 2013, FINRA will begin requiring firms to report the factor for each transaction in an asset-backed security (ABS) (except an ABS traded To be Announced (TBA)) in limited instances when firms effect such transactions as agent and charge a commission. Beginning July 22, the FINRA TRACE system will reject transactions where factor is required but not included in the transaction report to FINRA. Please refer to FINRA Regulatory Notice 13-15 for complete details on this new reporting requirement.

Testing Information

Beginning Monday, June 24, through Friday, July 19, 2013, firms can test the modifications to support the factor reporting requirements. In addition to testing via the TRACE test facility (NTF), FINRA has scheduled a production user acceptance test for Saturday, July 13, 2013. FINRA will issue additional details regarding this test as the date approaches. Note: Testing in the NTF between June 24 and July 19, 2013, will be free of charge.


Please direct questions concerning this notice via email to FINRA Product Management or call (866) 899-2107.