On July 19, the Financial Industry Regulatory Authority filed a proposed rule change with the Securities and Exchange Commission to amend its Trade Reporting and Compliance Engine (TRACE) reporting rules to require the reporting of transactions in all US Treasury Securities other than US savings bonds. This proposal would include transactions in US Treasury bills, notes and bonds, as well as separate principal and interest components of a US Treasury Security that have been separated pursuant to the Separate Trading of Registered Interest and Principal of Securities (STRIPS) program operated by the Treasury Department.

Purchases of US Treasury Securities by a FINRA member from the Treasury Department in connection with an auction would be exempt from these reporting requirements. However, when-issued trading in these securities would be reportable. In addition, repurchase and reverse repurchase transactions involving US Treasury Securities would not be reportable to TRACE.

The proposed rule change would require members to report transactions in US Treasury securities to TRACE on an end-of-day basis, and FINRA is not currently proposing to disseminate the information it receives under the proposal to the public. FINRA also is not proposing to charge transaction-level fees on the transactions in US Treasury Securities reported to TRACE at this time.

More information is available here.