In Regulatory Notice 22-17, FINRA is soliciting comment on a proposal to amend Rule 6730 to reduce the Trade Reporting and Compliance Engine (TRACE) trade reporting timeframe for transactions in all TRACE-Eligible Securities that currently are subject to a 15-minute reporting timeframe.
Specifically, members would be required to submit a report to TRACE as soon as practicable, but no later than one minute from the time of execution, for transactions in corporate bonds, agency debt securities, asset-backed securities and agency pass-through mortgage-backed securities traded to-be-announced for good delivery.
FINRA found that 81.9% of trades in relevant TRACE-eligible securities were reported within one minute of execution. In light of technological advances in the 18 years since FINRA adopted the 15-minute reporting requirement, particularly the increase in electronic trading, and the potential transparency benefits of more timely trade reporting, FINRA is seeking comment on whether it is appropriate at this time to reduce the trade reporting timeframe for these securities to one minute
The comment period expires October 3, 2022.
"FINRA believes that reducing the reporting timeframe for corporate, agency, ABS and MBS TBA GD transactions may improve transparency and allow investors and other market participants to obtain and evaluate pricing information more quickly—creating a qualitative increase in market transparency for these securities."