Trace Notice For Free

Trade Reporting and Compliance Engine (TRACE) is a program developed by the National Association of Securities Dealers (NASD), which is now known as FINRA, that allows for the reporting of over-the-counter (OTC) transactions pertaining to eligible fixed-income securities.

These digital trace data can be roughly defined as records of activity (trace data) undertaken through an online information system (thus, digital) (Howison, Wiggins, & Crowston, 2011) and can be collected from a multitude of technical systems, such as websites, social media platforms, smartphone apps, or sensors.

TRACE has two major aspects: rules that describe which bond transactions must be publicly reported and when; a technology platform that gathers transaction data and makes it available to the public.

These monthly reports cover trades of Treasuries, Securitized Products, Agency Bonds, and Corporate Debt that a member firm reported to the Trade Reporting and Compliance Engine (TRACE).

Thus, if a debt security originally sold in a Regulation S transaction is subsequently purchased or sold as part of a U.S. transaction, the transactions following the Regulation S transaction must be reported to TRACE.

Beginning with only corporate bonds, TRACE-Eligible securities now include certain agency debt securities, securitized products (asset-backed securities) and U.S. Treasury securities.

The term "TRACE-eligible security" shall mean all United States dollar denominated debt securities that are depository eligible securities under NASD Rule 11310 (d); Investment Grade or Non-Investment Grade; issued by United States and/or foreign private issuers; and, if a "restricted security" as defined in Securities