FINRA Trade Reporting and Compliance Engine (TRACE)

Stockbroker Law - Wednesday, September 09, 2015
FINRA Trade Reporting and Compliance Engine (TRACE)

The Financial Industry Regulatory Authority (FINRA) has developed a system for the mandatory reporting of most bond transactions in the United States. All broker/dealers who are members of FINRA are required to report transactions and corporate bonds to the TRACE System under rules approved by the SEC. These rules were designed to bring transparency to bond transactions and to prevent overpricing, excessive markups and self dealing whereby firms selling bonds to customers might otherwise reap improper and undisclosed trading profits by way of sales of bonds to customers.

The current reporting time for bond transactions is fifteen minutes, which means that firms are required to fully account for the bond pricing increase of bonds sold to customers. FINRA publishes and annual TRACE Fact Book which gives retail investors, market professionals, media and educational institutions a historical perspective of the over-the-counter (OTC) U.S. corporate bond, agency dementia, asset backed and mortgage back security markets. The TRACE Fact Book includes data entered in the TRACE system reporting historical bond pricing, figures and other market activity reported by TRACE participating firms.

We offer free initial consultation to bond investors who feel they may have been victimized in the bond markets. Please contact our offices at (518) 426-7700 to arrange a free initial consultation.

Recent

Blog Posts

Blog Post

Archive

Investment & Broker
Misconduct

Investment Misconduct

Whistleblowers
 

Whistleblowers

Private Company
Disputes

Private Company Disputes

Personal
Injury

Personal Injury