FINRA filed for immediate effectiveness to extend the TRACE pilot program another 8 months, so as to expire on 10/26/12.  FINRA will amend Rule 6730(e)(4) to accommodate this change. What the Rule Change Will Do. Extending the expiration date allows FINRA to continue to exempt transactions in TRACE-Eligible Securities on an NYSE facility (and as to which all the other conditions of the exemption are met) from the TRACE reporting requirements.  The extension also will provide additional time to analyze the impact of the exemption.  Without the extension, members would have been subject to both FINRA and NYSE trade reporting requirements with respect to these securities. What the Rule Change Doesn't Do. As proposed, it would not expand or otherwise change the pilot.  FINRA notes that the success of the pilot program remains dependent on FINRA’s ability to effectively continue to conduct surveillance on corporate debt trading in the OTC market. In this regard, FINRA Rule 6730(e)(4) would continue to require that the exemption be predicated on the data agreement between FINRA and NYSE to share data related to the transactions covered by the Rule remaining in effect. However, FINRA supports a regulatory construct that, in the future, consolidates all last sale transaction information to provide better price transparency and a more efficient means to engage in market surveillance of TRACE-Eligible Securities transactions. For further details, refer to:   [FINRA Rule Filing 11-72, 12/15/11]