Updated – TRACE Reporting and Dissemination Changes Effective July 18 2016

On Monday, July 18, 2016, FINRA will implement changes and enhancements to TRACE trade reporting and dissemination, as outlined in a Technical Notice from December 10, 2015. In addition to these changes, FINRA will allow modifications to the Special Processing Flag on July 18, 2016.

Currently, the TRACE Special Processing Flag field cannot be modified on Trade Corrections. When the original value of this field is submitted erroneously, firms are required to submit a Trade Cancel of the original trade, followed by a new Trade Entry with the intended Special Processing value. The changes will eliminate the need for a two-step process.

TRACE FIX and CTCI Specifications have been updated to denote the change to the modification of the Special Processing Flag. The documents still display the edits for the changes to the No Remuneration Indicator and ATS Execution MPID. It should be noted that those changes are not affected by the Special Processing update and are still scheduled to be supported as of July 18, 2016.

TRACE Trade Reporting Specifications

• TRACE FIX Spec for Corporates and Agencies – version 1.3a
• TRACE FIX Spec for Securitized Products – version 1.7b
• TRACE CTCI Spec for Corporates and Agencies – version 3.3a
• TRACE CTCI Spec for Securitized Products – version 1.5b

FINRA will issue details regarding testing of these changes in a future technical notice.

Questions regarding this notice or about any of the TRACE technical changes should be directed to FINRA Product Management at (866) 899-2107. For questions regarding the rule amendments, please contact the personnel listed on the associated Regulatory Notices.