FINRA Establishes a New Effective Date for Reporting Asset-Backed Securities to TRACE and Related Rule Changes
Trade Reporting and Compliance Engine (TRACE)
Referenced Rules & Notices
FINRA Rule 6710
FINRA Rule 6720
FINRA Rule 6730
FINRA Rule 6750
FINRA Rule 6760
FINRA Rule 7730
Regulatory Notice 10-23
FINRA is establishing a new effective date of May 16, 2011, for reporting Asset-Backed Securities to TRACE.
Questions regarding this Notice should be directed to:
Discussion and Background
FINRA's TRACE Rules (the Rule 6700 Series) provide for the reporting of transactions in TRACE-Eligible Securities to TRACE and the dissemination of transaction information, with limited exceptions. TRACE reporting and data fees are set forth in FINRA Rule 7730.
In February 2010, the SEC approved SR-FINRA-2009-065 (TRACE ABS filing), which:
In April 2010, FINRA published Regulatory Notice 10-23, which announced the SEC's approval of the TRACE ABS filing and established an effective date of February 14, 2011.
However, pursuant to this Notice, FINRA is establishing a new effective date of May 16, 2011, for the rule amendments in the TRACE ABS filing.2 FINRA believes that an extended effective date will allow sufficient time to make additional systems enhancements and allow for coordinated testing of the technology.3
1See Securities Exchange Act Release No. 61566 (February 22, 2010), 75 FR 9262 (March 1, 2010) (SEC Order Approving File No. SR-FINRA-2009-065) (TRACE ABS filing). See also Securities Exchange Act Release No. 61948 (April 20, 2010), 75 FR 22670 (April 29, 2010) (Notice of Filing and Immediate Effectiveness of File No. SR-FINRA-2010-019 to Extend the Implementation Period for SR-FINRA-2009-065).
2See Securities Exchange Act Release No. 63223 (November 1, 2010), 75 FR 68654 (November 8, 2010) (Notice of Filing and Immediate Effectiveness of File No. SR-FINRA-2010-054 to Extend the Implementation Period for SR-FINRA-2009-065).
3 In Regulatory Notice 10-23, FINRA also announced that the six-month pilot program, during which the period to report a transaction in an Asset-Backed Security is extended from the date of trade during TRACE System Hours to T + 1 during TRACE System Hours, would end on Sunday, August 14, 2011, at 11:59:59 p.m., Eastern Time, based on the then designated effective date of February 14, 2011. Based on the new effective date of May 16, 2011, the pilot program will end on November 16, 2011.