View source for Trade reporting and compliance engine

'''Trade reporting and compliance engine''' ('''TRACE'''), is a United States financial reporting regulation and related system for publicly reporting [[Bond (finance)|bond]] transactions.  

Unlike [[stock]]s, which generally trade transparently on public exchanges, corporate bonds and structured products trade "[[over-the-counter]]", meaning they are private transactions between individual counterparties, and so the transactions were generally not publicly reported. To create better transparency into the bond market, the [[Securities and Exchange Commission]] under the  Rule 6200 Series instituted the trade reporting and compliance engine (TRACE). 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.<ref>{{cite web |url=http://www.finra.org/Industry/Compliance/MarketTransparency/TRACE/ |title=Trade Reporting and Compliance Engine (TRACE) |publisher=FINRA |accessdate=September 23, 2014}}</ref>

==History==
Starting in 2001, and allowing a two-year comment period, the SEC published the TRACE rules, marking the first time many bond trades were subject to public reporting.<ref>{{cite web |url=http://finra.complinet.com/en/display/display_main.html?rbid=2403&element_id=2557 |title=Notice 01-18: SEC Approves Rules To Require Fixed Income Transaction Reporting And Dissemination |publisher=NASD |date=March 2001 |accessdate=September 23, 2014}}</ref> The TRACE technology platform allows member firms of the [[Financial Industry Regulatory Authority]] (FINRA, formerly the National Association of Security Dealers, NASD) to report trades in [[fixed-income]] securities. It also allows the public to view and download [[market data]], including prices and trade volume for [[corporate bonds]] and [[structured products]], in some cases going back to 2009. The first phase of TRACE was implemented in July 2002.

==References==
{{reflist}}

[[Category:Financial regulation in the United States]]
[[Category:United States securities law]]


{{econ-stub}}