FINRA proposes changes to FINRA Rule 6730 to provide greater transparency in transactions in Asset-Backed Securities ("ABSs") that are TBA transactions (to-be-announced).  The changes would reduce the reporting period for TRACE-Eligible ABSs that are Agency Pass-Through Mortgage-Backed Securities and are traded on a to-be-announced basis.  As proposed, FINRA would implement the following changes:

• FINRA Rule 6730, to reduce the reporting period for TBA transactions in two phases;
• FINRA Rule 6750, to provide for the dissemination of TBA transactions in real-time - i.e., immediately upon FINRA’s receipt of the transaction report;
• FINRA Rule 7730, to establish fees for real-time TBA transaction data:  (i) for a data set of real-time TRACE disseminated TBA transaction data at the same rates currently in effect for similar real-time TRACE disseminated data sets;  and,  (ii) for a data set of historic TRACE TBA transaction data at the same rates currently in effect for similar Historic TRACEData sets.
• FINRA Rules 6730 and 7730, to delete references to a pilot program that no longer is in effect, and to incorporate other minor administrative, technical or clarifying changes.

Finally, FINRA would establish a limit or “cap” of $50mn for disseminated TBA transactions protocols, providing that, for a TBA transaction in excess of $50 million, the size (volume_ of the transaction would be displayed as “$50MM+”  in disseminated TRACE data. Conclusion. The effective date of the rule change will be announced in a Regulatory Notice no later than 60 days after it's been approved by the SEC.  The actual effective date will be no later than 180 days following publication of the Regulatory Notice announcing Commission approval. For further details, go to:   [FINRA Rule Filing11-69, 11/22/11]