FINRA filed for immediate effectiveness to provide additional time to report certain Reportable TRACE Transactions and waive concomitant transaction reporting fees.  There are no changes to the text of FINRA rules.

Specifically, FINRA is providing limited relief from the new TRACE trade reporting requirements (and transaction reporting fee obligations) for those Reportable TRACE Transactions in securities not identified by a CUSIP effected from 3/1/10 through 11/30/10.  FINRA also is providing additional time - until 2/28/11 - for members to trade report Covered Reportable TRACE Transactions and waiving transaction reporting fees concomitant with such transactions reported by that date. 

    Basis For the Change.   On 9/28/09, the SEC approved FINRA Rule Filing 9-10 which, among other things, amended the FINRA Rule 6700 Series to:  (i) expand TRACE to include Agency Debt Securities as TRACE-Eligible Securities and primary market transactions as Reportable TRACE Transactions;  (ii) delete criterion that TRACE-Eligible Securities must be "depository eligible securities under NASD Rule 11310(d)," effectively introducing TRACE reporting obligations for securities that have no assigned CUSIP;  and, (iii) require members to report transactions in Agency Debt Securities and primary market transactions.  This rule change became effective on 3/1/10. 

Due to operational and technical challenges introduced by trade reporting in securities not assigned a CUSIP, changes were needed to firms’ processes as well as to the TRACE system to facilitate TRACE trade reporting for those securities.  TRACE-related changes were implemented by FINRA on 12/1/10.    [FINRA Rule Filing 11-1, 1/4/11]