FINRA Trace Treasury Reporting

On Jun. 5, FINRA proposed rules on ATS reporting of Treasuries.

  • Amend Rule 6730 applicable to ATSs which report transactions in US Treasuries.

Non-FINRA Principal Members

  • To identify non-FINRA member subscribers on the transaction reports to TRACE.
  • Non-member firms include hedge funds, banks and principal trade firms (PTFs).
  • Principal trade investors often deploys proprietary automated trading strategies.
  • Low latency is a key element of trading strategies; and while may be registered
    as a broker-dealer, it does not have clients as in a typical dealer business model.
  • This will help identify majority of trades on ATS currently not done by members.

ATS Trading Data Transparency

  • A large portion of ATS trades in US Treasury involves unidentified counterparties.
  • Incomplete trade data for FINRA and official sector, requiring specific subscriber.
  • Information to enhance information available to assess treasury market liquidity.
  • Improve surveillance pattern for detailed granularity of trading data and activity.


  • Comments should be submitted within 21 days of publication in federal register.
  • FINRA will announce effective date in notice, by 60 days following SEC approval.
  • Effective date will within 180 days, following publication of the regulatory notice.
  • ATSs to submit list of its non-member subscribers, 60 days before effective date.