Thursday, February 4, 2021
In March 2001, the U.S. Securities and Exchange Commission (“SEC”) published Notice 01-18, pursuant to which the SEC approved rules requiring “Fixed Income Transaction Reporting And Dissemination” under SEC Rule 6200 Series, so that information about the trading of corporate bonds and certain structured products would be publicly available. The reporting system was named “Trade Reporting and Compliance Engine” (“TRACE”). TRACE determines which bond transactions must be reported and when that information must be reported. The TRACE technology platform is administered in conjunction with the Financial Institution Regulatory Authority (“FINRA”), as the successor to the regulatory authority part of the National Association of Securities Dealers (“NASD”). Registered broker-dealers (i.e., registered with the SEC), who are FINRA members (and almost all are), are required to report on TRACE trades in fixed income securities, including prices and trade volume. This information is accessible by the public, including other broker-dealers.