• Services
  • Attorneys
  • Media & Insights
  • Online Payment
Results may vary depending on your particular facts and legal circumstances. No aspect of this advertisement has been approved by the Supreme Court of New Jersey. A description of the selection methodology can be found here.
  • Services
  • Attorneys
  • Media & Insights
  • About Us
  • Delivering Value
  • Diversity & Inclusion
  • Meritas
  • Contact Us
  • Online Payment
    A
    Alternative Dispute ResolutionAntitrust & Trade RegulationAppellate Practice
    B
    Banking & Financial ServicesBankruptcy, Creditors’ Rights, and Financial RestructuringBeer LawBusiness Law
    C
    Cannabis LawConstruction LawCooperative and Condominium Law (Co-op & Condo)Criminal Defense
    E
    Economic Development LawElder Care & Special Needs LawElectronic Discovery ("E-Discovery")Environmental LawERISA & Employee BenefitsEstate Planning and Administration & Wealth PreservationExecutive Compensation and Employment Strategies
    F
    Food, Beverage & HospitalityFranchise Law
    H
    Health Care & Life SciencesHealth Care ProvidersHigher EducationHospitals and Health Networks
    I
    ImmigrationInsurance CoverageIntellectual PropertyIntellectual Property Litigation, Arbitration, and Dispute ResolutionIntellectual Property Portfolio Strategy, Management & LicensingInternational BusinessInternet Law
    L
    Labor & EmploymentLiquor Law, Licensing, Manufacturing, and DistributionLitigation
    M
    Media Law & Creative Economy PracticeMergers & AcquisitionsMunicipal Law
    N
    Non-Profit Law
    P
    Patent Preparation and ProsecutionPharmaceutical / Medical Devices / Pharma ServicesProducts and Consumer Liability DefenseProfessional LiabilityPublic Utilities
    R
    Real Estate, Finance, and Land Use
    S
    SecuritiesSolar Energy
    T
    TaxationTelecommunicationsTrademark & Copyright Protection & Enforcement
    V
    Venture Tech & Emerging Growth Companies
    W
    White Collar Investigations & DefenseWorkers’ Compensation
    • New Jersey
    • New York
    • Pennsylvania
    • Blogs
    • Articles
    • Podcasts
    • COVID-19 Resources

    Categories

    Anti-Trust/Trade Regulations Banking/Financial Services Business Operations Choice of Entity Compliance Construction Corporate Finance/Securities Corporate Governance Corporate Transparency Act Economic Development Law Entity Formation Franchise Law General Liquor Law Mergers & Acquisitions Public Utilities Real Estate Tax Uncategorized
    Blogs > Biz Law Blog > Tracking Treasury Trading: The Fed...
    NM PR
    Visit Profile

    Tracking Treasury Trading: The Fed to Collect the TRACEs

    Tracking Treasury Trading: The Fed to Collect the TRACEs

    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.

    The Fed to Collect the TRACEs

    Beginning in July 2017, registered broker-dealers have been required to report transactions in U.S. Treasury securities (i.e., Notes, Bonds, etc., as well as most Agencies) to TRACE. The enhanced transparency in the trading activity involving government securities has recently been the subject of several regulatory initiatives, including the September 28, 2020, proposal of the SEC to amend its Regulation ATS (“Alternative Trading Systems”) to remove the exemption from the application of Regulation ATS to trading in government securities. See a thorough discussion of the SEC proposal and the reasons for it in my December 1, 2020, blog post, “Treasury Transparency: Enhanced Regulations for Trading in Government Securities.” In that December 1 blog post, I repeatedly cite the comments of Commissioner Elad L. Roisman (Acting Chair of the SEC from December 23, 2020, until January 21, 2021) concerning both the importance of increased transparency and possible “safety and soundness” structural requirements, points made in his September 28, 2020, presentation at a Conference on the U.S. Treasury Market sponsored by the SEC, the Commodity Futures Trading Commission, the U.S. Treasury, and the Board of Governors of the Federal Reserve System (the “Fed”).

    On Thursday, January 21, 2021, the Fed issued a “Proposed Agency Information Collection Activities; Comment Request,” 86 FR 6329, which, if implemented, would have the Fed collect data on daily trading activities in U.S. Treasuries from TRACE. The Fed proposal would also require the collection from certain banking institutions of data on daily transactions in debt and mortgage-backed securities issued by agencies of the U.S. Government. In a January 22, 2021, “Statement on Federal Reserve Board’s Proposed Collection of U.S. Treasury Transaction Data,” Commissioner Roisman commends the Fed for the Proposal. He notes again, as he did in his September 28, 2020, presentation, “…given the importance of the Treasury Market, it is vital that TRACE include a complete set of Treasury transaction information.” The Commissioner went on to add:

    I look forward to continued collaborative efforts among regulators to pursue initiatives to enhance the Treasury market’s transparency, integrity, and resiliency.

    Tracking Treasury Trading

    Given the sheer size of the market for Treasury securities (some $835 billion average daily trading volume between July and December 2019) and the recurring instances of the market “freezing up” (after 9/11, during the worst days of the Great Recession in 2008, and after COVID-19 struck), the importance of this kind of data collection should be obvious, particularly when many believe that the U.S. economy is recovering primarily because of the extraordinary interventions in the market by the Fed. How much better that the Fed’s actions be taken with the benefit of knowledge, and not (as in the words of St. Paul in the First Epistle to the Church at Corinth, Chapter 13, Verse 12) “through a glass darkly.”

    If you have any questions about this post or any other related securities or general business law matters, please do not hesitate to contact the attorneys in our Business Law Group.

    NM PR
    Visit Profile

    Related Posts

    When the “Back Door” is Closed: Muni Bond Underwriter Sanctioned “Oh, Baloney!” SEC Sues Father, Son, and Friend for Manipulating the Stock of a New Jersey Deli Who Pays and How Much? Consolidated Audit Trail Funding

    Share

    Tags

    #Broker #Federal Reserve System #Federal Trade Commission #SEC #Treasury

    Helpful links

    • About Us
    • News
    • Services
    • Blogs
    • Attorneys
    • Articles
    • (COVID-19)
    • Award Methodology
    • Events
    • Join our Team
    Connect
    Online Payment

    Connect with Us

    • LinkedIn
    • Facebook
    • Twitter
    • Instagram
    • Youtube

    Join our growing team

    We are looking for quality attorneys to help us do more for our clients. At Norris McLaughlin, each attorney has the same opportunity to succeed whether you’re at the beginning of a career or pinnacle of the profession.

    Learn More

    Subscribe to our content

    Receive timely legal information delivered to your inbox

    This field is for validation purposes and should be left unchanged.
    © , Norris McLaughlin, P.A., All Rights Reserved. Attorney Advertising.
    VIEW OUR DISCLAIMER,  TERMS OF USE,  AND PRIVACY POLICY

    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume you consent to our cookie policy. Learn more