Technical Notice

Reporting Corporate and Agency Debt to New TRACE Platform

October 3, 2011

In May 2011, FINRA implemented a new TRACE technology platform in connection with the trade reporting of Asset-Backed Securities (also referred to as Securitized Products). FINRA plans to migrate trade reporting in connection with corporate bonds and Agency Debt Securities (Corporates and Agencies) to the same platform. In connection with the migration of Corporates and Agencies, on September 22, 2011, FINRA filed a proposed rule change with the SEC to amend certain reporting requirements in Rule 6730 that are required to migrate Corporate and Agencies to the new platform (see SR-FINRA-2011-053). FINRA will post a follow-up notification upon SEC approval of the proposed rule change.  Although subject to the SEC’s approval of the proposed rule change, the anticipated effective date of the rule change and the migration is February 6, 2012.

At this time FINRA is publishing the technical specifications, which include the proposed Rule 6730 amendments, to provide member firms adequate time to incorporate the system changes that are required to migrate Corporates and Agencies to the new platform. The new platform will support FIX protocol for trade reporting and trade management of Corporates and Agencies. In addition, FINRA is modifying CTCI protocol trade reporting and trade management messages. As a result, the new platform will not support the current CTCI message formats for Corporates and Agencies. Firms wishing to continue to deliver Corporate and Agency trades to TRACE via CTCI must convert to the new formats. The new FIX and CTCI specifications for Corporates and Agencies are now available on our website1.

FINRA will issue additional Technical Notices about the following aspects of the migration:

  • Testing—test schedule, test scripts and registration;
  • API specifications for Corporates and Agencies file downloads (to replace the current FTP method).
  • Updated BTDS and ATDS data feed specifications to conform with the new platform; and
  • Updated FINRA TRAQS (Trade Reporting and Quotation Service) Web Application User Guide.

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

1 Please note that the technical specifications referred to above for reporting transactions in corporate and agency debt securities in the new platform differ from the current FINRA Rule 6700 Series regarding reporting of weekend and holiday executions, quantity and commission amounts and settlements, pending approval of pending SEC filing SR-FINRA-2011-053.