SEC Approves Amendments to TRACE Rules and Dissemination Protocols to Disseminate Rule 144A Transactions in TRACE-Eligible Securities and Related Fees
Trade Reporting and Compliance Engine (TRACE)
Rule 144A transactions
Referenced Rules & Notices
FINRA Rule 6750
FINRA Rule 7730
Securities Act Rule 144A
The SEC approved amendments to FINRA Rule 6750 and TRACE dissemination protocols that provide for the dissemination of transactions in TRACE-eligible securities that are effected pursuant to Securities Act Rule 144A (Rule 144A transactions). In addition, the SEC approved amendments to FINRA Rule 7730 to establish real-time and historic data sets for Rule 144A transactions.1 In a related rule filing, FINRA amended Rule 7730 to establish the fees for Rule 144A real-time and historic data at the same rates currently in effect for similar data sets.2
The effective date is June 30, 2014.
The amended rule text is available at www.finra.org/notices/13-35.
Questions regarding this Notice may be directed to:
Background and Discussion
FINRA amended Rule 6750 and the dissemination protocols to provide for the dissemination of Rule 144A transactions in TRACE-eligible securities, provided the asset type (e.g., corporate bonds) is currently subject to dissemination under Rule 6750. In addition, FINRA amended Rule 7730 to establish real-time and historic data sets for Rule 144A transactions and related fees. FINRA also modified Rule 7730 to incorporate clarifying and technical amendments to various provisions. The more significant amendments to the FINRA rules are as follows:
1See Securities Exchange Act Release No. 70345 (September 6, 2013), 78 FR 56251 (September 12, 2013) (SEC Order Granting Approval of Proposed Rule Change Relating to the Dissemination of Transactions in TRACE-Eligible Securities that are Effected Pursuant to Securities Act Rule 144A, File No. SR-FINRA-2013-029).
2See Securities Exchange Act Release No. 70691 (October 16, 2013), 78 FR 62788 (October 22, 2013) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to TRACE Fees for Securities Act Rule 144A Transaction Data, File No. SR-FINRA-2013-043).
3See SR-FINRA-2013-029. The terms Investment Grade and Non-Investment Grade are defined in FINRA Rule 6710(h) and FINRA Rule 6710(i), respectively.
4See SR-FINRA-2013-029 and SR-FINRA-2013-043.
5See SR-FINRA-2013-029 and SR-FINRA 2013-043. The terms agency pass-through mortgagebacked security, to be announced (TBA), and SBA-Backed ABS are defined in FINRA Rule 6710(v), FINRA Rule 6710(u), and FINRA Rule 6710(bb), respectively.