Modifications to TRACE Dissemination Protocols for Specified Pool Transactions (MBS)

As announced in Regulatory Notice 21-02, FINRA is modifying the convention for rounding the original Loan-To-Value ratio used in the dissemination of transactions in agency pass-through mortgage-backed securities and Small Business Administration (SBA)-backed asset-backed securities traded in specified pool transactions. This change will become effective on Monday, May 17, 2021.  On that day, the TRACE RDID Master File will be updated with the security changes.

While there are NO required technical changes or amendments to any of the FINRA technical specifications for the Securitized Products Data Feed (SPDS), or the Reference Data API, this implementation will impact the assignment of the Reference Data Identifier (RDID) for each MBS security.  

Because the volume of RDID reassignments that will occur on May 17, 2021 may impact system processing, FINRA will post a sample test MBS Master File on FINRA.org from April 19, 2021 through May 14, 2021. This file will allow users to test the volume of changes that will occur. Note, the test file will be a static file and will not change from week to week up until the implementation date.

For any questions regarding this notice, please contact: TRACE Data Services or (888) 507-3665; or FINRA Product Management or (866) 899-2107.