FINRA Enhances Post-Trade Transparency in U.S. Treasury Securities Market
28 Marzo 2024 - 8:29AM
Business Wire
FINRA has begun disseminating individual transactions in active
U.S. Treasury securities at the end of the day, raising the level
of transparency in the market for these benchmark securities.
The information is available on a same-day basis for FINRA
members and other professionals who subscribe to the new data
product. It is also publicly available and free of charge on
FINRA’s website for non-professionals’ personal, non-commercial use
on a next-day basis. Starting April 1, FINRA will also begin
offering historical data on a six-month delay.
“Given the unique and fundamental role of the U.S. Treasury
securities market in the global economy, promoting the market’s
transparency is important for both Treasury market participants and
the broader financial system,” said Stephanie Dumont, Executive
Vice President of Market Regulation and Transparency Services at
FINRA. “Consistent with our longstanding practice, FINRA is
introducing greater transparency in a calibrated and careful
manner, benefiting liquidity and resilience in this critical market
while also mitigating potential information leakage concerns.”
FINRA is publishing information on individual transactions in
Treasury securities that are on-the-run nominal coupons (generally,
the most recently auctioned Treasury security that is a note or
bond paying fixed rate nominal coupons). The data includes the
price and size of the trade; the counterparty type (dealer,
customer, affiliate or alternative trading system); a flag
indicating whether the trade was executed on an ATS; and other
trade modifiers and indicators.
The data does not include any identifying information about the
transaction participants. In addition, dissemination is subject to
transaction size caps, over which the actual size of the trade will
be included only in the historical data. For information about the
transaction caps, data fees or other details, see Regulatory Notice
24-06.
Publishing the new data is the latest in a series of initiatives
FINRA has taken to increase transaction reporting and transparency
in the Treasury securities market, in consultation with the
Department of the Treasury, the Board of Governors of the Federal
Reserve System and the Securities and Exchange Commission:
- February 2023 – FINRA increased the cadence of the aggregated
volume data it publishes for U.S. Treasury Securities to daily and
enhanced the content of the aggregate data.
- Sept. 21, 2022 – Certain depository institutions began
reporting transactions in Treasury securities, agency debt
securities and agency mortgage-backed securities to TRACE.
- March 10, 2020 – FINRA began to publicly disseminate aggregate
data on U.S. Treasury securities trading volume on a weekly
basis.
- July 10, 2017 – FINRA members began reporting information on
transactions in U.S. Treasury securities to TRACE (for regulatory
oversight, not for public dissemination).
About FINRA
FINRA is a not-for-profit organization dedicated to investor
protection and market integrity. FINRA regulates one critical part
of the securities industry—member brokerage firms doing business
with the public in the U.S. FINRA, overseen by the SEC, writes
rules, examines for and enforces compliance with FINRA rules and
federal securities laws, registers broker-dealer personnel and
offers them education and training, and informs the investing
public. In addition, FINRA provides surveillance and other
regulatory services for equities and options markets, as well as
trade reporting and other industry utilities. FINRA also
administers a dispute resolution forum for investors and brokerage
firms and their registered employees. For more information, visit
www.finra.org.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240328917913/en/
media@finra.org