The Financial Industry Regulatory Authority filed Thursday with the Securities and Exchange Commission a proposal to expand its collection and dissemination of new-issue reference data for corporate bonds.
The proposal calls for FINRA’s Trade Reporting and Compliance Engine, or TRACE, to serve as a centralized source for market participants to receive more comprehensive and timely security description information about new issues.
“Making TRACE the common source for reference data about new-issue corporate bonds will provide market participants with more comprehensive, consistent and timely information they can rely on for the efficient trading and settlement of the bonds,” said Thomas Gira, FINRA’s executive vice president of Market Regulation and Transparency Services, in a statement.
FINRA’s proposal aligns with a recommendation by the SEC’s Fixed Income Market Structure Advisory Committee (FIMSAC), which said “the implementation of its recommendation would make the valuation, trading, settlement and trade reporting of new-issue corporate bonds more efficient by reducing trading errors and enhancing competition among data vendors, trading platforms and investors.”