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Fixed Income

FINRA plays an important role in regulating and providing transparency to the fixed income securities markets. For example, we operate and enforce FINRA rules regarding the Trade Reporting and Compliance Engine (TRACE®), and enforce, for our member firms, federal securities regulations governing fixed income, including those promulgated by the Securities and Exchange Commission (SEC) and Municipal Securities Rulemaking Board (MSRB).

Most recently, the SEC designated FINRA as the examination and enforcement authority for municipal advisors that are FINRA members. Firms selling municipal securities or performing municipal advisory services must register with the MSRB.

FINRA Member Regulation is responsible for examining all FINRA members involved in the fixed income markets for compliance with applicable rules and regulations. Among other things, Member Regulation reviews firms' fixed-income sales practices to determine whether they have dealt fairly with customers and that their registered representatives are properly qualified and supervised, and ensures they are in compliance with net capital requirements.

Market Regulation, meanwhile, monitors trading activity in more than 2.5 million individual debt securities, including corporate bonds, municipal securities, government agency securities, U.S. Treasury Securities and mortgage- and asset-backed securities, for potential manipulative activity and to ensure customers receive fair prices.

2022 Report on FINRA’s Examination and Risk Monitoring Program

The Firm Short Positions and Fails-to-Receive in Municipal Securities section of the 2022 Report on FINRA’s Risk Monitoring and Examination Activities (the Report) informs member firms’ compliance programs by providing annual insights from FINRA’s ongoing regulatory operations, including (1) relevant regulatory obligations and related considerations, (2) exam findings and effective practices, and (3) additional resources.

Trade Reporting and Compliance Engine (TRACE)

TRACE, introduced in 2002, captures real-time consolidated transaction data for all eligible public and private (144A) corporate bonds—including investment grade, high yield and convertible debt—agency debt and U.S. Treasury Securities. Securitized products, such as mortgage-backed securities (MBS), traded in specified pool or To Be Announced (TBA) transactions also are part of the TRACE system.

As a result, TRACE brings transparency to the bond market. Individual investors and market professionals can access information on all over-the-counter (OTC) public and private activity representing more than 99 percent of total U.S. corporate bond debt, more than 16,000 agency debt securities, and more than one million asset and mortgage-backed securities.

FINRA licenses TRACE data to TRACE vendors and subscribers. The TRACE Content Licensing section provides information about data licensing options, agreements, technical specifications, and market data policies.

Learn more about TRACE

Contact FINRA

FINRA's Fixed Income Regulation (FIR) staff provides broker-dealers, attorneys, registered representatives, investors and other interested parties with guidance relating to FINRA’s enforcement of MSRB rules. 

FIR staff contacts:
Cynthia Friedlander and Bonnie Bowes
FINRA, Fixed Income Regulation
1735 K Street, NW
Washington, DC 20006
(202) 728-8000

  • Regulatory Notice 17-24
    FINRA Issues Guidance on the Enhanced Confirmation Disclosure Requirements in Rule 2232 for Corporate and Agency Debt Securities
  • Regulatory Notice 17-08
    SEC Approves Amendments to Require Mark-Up/Mark-Down Disclosure on Confirmations for Trades With Retail Investors in Corporate and Agency Bonds
  • Regulatory Notice 15-46
    Guidance on Best Execution Obligations in Equity, Options and Fixed Income Markets
  • Regulatory Notice 15-36
    FINRA Requests Comment on a Revised Proposal Requiring Confirmation Disclosure of Pricing Information in Corporate and Agency Debt Securities Transactions
  • Regulatory Notice 15-31
    SEC Approves Rule to Address Conflicts of Interest Relating to the Publication and Distribution of Debt Research Reports
  • Regulatory Notice 15-27
    Guidance Relating to Firm Short Positions and Fails-to-Receive in Municipal Securities
  • Regulatory Notice 15-03
    FINRA Requests Comment on Proposal to Require Alternative Trading Systems to Submit Quotation Information Relating to Fixed Income Securities to FINRA for Regulatory Purposes
  • Regulatory Notice 10-41
    FINRA Reminds Firms of Their Sales Practice and Due Diligence Obligations When Selling Municipal Securities in the Secondary Market
  • Regulatory Notice 09-35
    FINRA Recommends Review of Municipal Securities Activities
  • Notice to Members 06-36
    NASD and NYSE Joint Interpretive Guidance on Fixed Income Research
  • 2022 Report on FINRAs Examination and Risk Monitoring Program
    Firm Short Positions and Fails-to-Receive in Municipal Securities
    The Firm Short Positions and Fails-to-Receive in Municipal Securities section of the 2022 Report on FINRA’s Risk Monitoring and Examination Activities (the Report) informs member firms’ compliance programs by providing annual insights from FINRA’s ongoing regulatory operations, including (1) relevant regulatory obligations and related considerations, (2) exam findings and effective practices, and (3) additional resources.
    February 09, 2022
  • 2019 Exam Findings Report
    Fixed Income Mark-up Disclosure
    The Fixed Income Mark-up Disclosure section of the 2019 Report on Exam Findings informs member firms’ compliance programs by describing recent findings and observations from FINRA’s examinations, and, in certain cases, also providing a summary of effective practices.
    October 16, 2019
  • 2018 Exam Findings Report
    Fixed Income Mark-Up Disclosure
    The Fixed Income Mark-Up Disclosure section of the 2018 Report on Exam Findings informs member firms’ compliance programs by describing recent findings and observations from FINRA’s examinations, and, in certain cases, also providing a summary of effective practices.
    December 07, 2018
  • Guidance
    Phone-In Workshop and WebEx Presentation Recording: Markup/Markdown Analysis Report
    In the near-future, FINRA is introducing a new TRACE Markup/Markdown Analysis Report on the Report Center. The report displays a firm's markup and markdown behavior compared to the industry and provides the underlying details used to calculate the markup or markdown.
    May 23, 2018
  • Guidance
    Fixed Income Report Cards Demonstration (On Demand)
    On this free, on-demand recording of a WebEx presentation, FINRA staff members discuss new and updated fixed income-related Report Cards.
    November 25, 2015
  • Targeted Examination Letter
    Targeted Examination Letter on the Retail Sale of “Gas Bonds”
    FINRA is reviewing transactions with retail customers of certain fixed income products known as “Gas Bonds.”
    June 01, 2009
  • FAQ
    Fixed Income Confirmation Disclosure: Frequently Asked Questions (FAQ)
    Preliminary Note: FINRA recently adopted enhanced confirmation disclosure requirements for corporate and agency bonds.
  • Investor Education
    Market Data Center Bonds Guide
    This short guide illustrates how to use the different features and functions of the Bonds page, which includes general bond market information such as news, benchmark yields, and corporate bond market activity and performance information, descriptive data on U.S. Treasury, Agency, Corporate and Municipal Bonds, Credit Rating Information from major rating agencies, and price information.