SEC Grants Approval of FINRA's Amendments to TRACE Rules (Fed. Reg.)

The SEC order approving FINRA's proposed rule change to the Trade Reporting and Compliance Engine ("TRACE") rules (as modified by Amendment No. 1) and soliciting comments on Amendment No. 1 was published in the Federal Register.

FINRA proposed to amend the TRACE Rules 6700 series to (i) add a new contra-party type to be used in TRACE reports to identify a transaction with a nonmember affiliate, and (ii) to require a firm to identify when a transaction with a nonmember affiliate meets specified conditions, so that FINRA can suppress the dissemination of such trade.

In response to comments concerning the implementation and application of the proposed rule change, FINRA filed Amendment No. 1, which extended the time period for implementation and provided guidance on classifying an entity as a nonmember affiliate. FINRA also reaffirmed that it would "continue to coordinate with other regulators, where practicable."

Although the SEC approved the proposed rule change as modified by Amendment No. 1 on an accelerated basis, comments on Amendment No. 1 may be submitted until April 7, 2015.

See: 80 FR 13940.Related news: FINRA Proposes to Amend TRACE Rules (December 5, 2014).