FINRA Proposal for Enhancements to TRACE Reporting for Treasuries

On December 23, 2020, FINRA issued a request for comment on Enhancements to TRACE Reporting for U.S. Treasury Securities. FIF has drafted a comment letter on the rule proposal based on feedback from participants of the FIF TRACE Working Group. The next FIF TRACE Working Group call is scheduled for February 16 at 2 pm ET for FIF Members to provide any final comments on the draft comment letter. During the call, FIF Members also will discuss a rule proposal by the Federal Reserve to expand TRACE reporting for Treasuries and agencies to certain depository institutions and the potential impact on broker-dealers that currently report to TRACE. The Working Group also will discuss the Recommendation Regarding Defining “Electronic Trading” for Regulatory Purposes issued by the Fixed Income Market Structure Advisory Committee (FIMSAC) on October 5, 2020 as it relates to TRACE reporting.