Treasuries Rule Requiring Daily Trade Reporting Gets SEC Nod

Updated on
  • Wall Street’s self-regulator proposed measure in July
  • Information will only be shared with officials, not public

The U.S. Securities and Exchange Commission said it approved a plan requiring broker-dealers to report U.S. Treasuries trading information by the end of the day the transactions occur.

The measure, proposed in July by the Financial Industry Regulatory Authority, Wall Street’s self-regulator, mandates that dealers report their Treasuries trades to Finra through its corporate-bond data-collection platform, known as TRACE, the SEC said in a press release. The policy will go into effect some time in the next year, on a date that Finra will announce within the next 90 days, according to the rule.

The proposal is part of regulators’ efforts to shed light on the workings of the $13.7 trillion Treasuries market, the benchmark for global borrowing, after an episode of unusual volatility on Oct. 15, 2014. The incident, which involved a 12-minute crash and rebound in yields with no apparent trigger, generated scrutiny of transparency and liquidity in Treasuries trading and prompted the first government review of the market since 1998.

"Gaining access to comprehensive trading data is a fundamental step in the progress of reviewing the U.S. Treasury market,” SEC Chair Mary Jo White said in the release. “This marks the first time a regulatory trade reporting regime has been established for a significant segment of the U.S. Treasury market, which will enable regulators to better understand market dynamics and exercise their oversight function.”

To read about feedback related to the proposal, click here.

Not Public

The collected information on trades will be available only to regulators, and not shared publicly, according to the new rule.

Treasury Counselor Antonio Weiss plans to address the topic of public reporting in remarks at a conference next week at the Federal Reserve Bank of New York, according to department spokesman Rob Runyan.

“Today’s approval of the Finra rule to collect data on the trading of cash Treasuries is a landmark event, and marks a sea change in data available to the official sector,” Weiss said in a statement.

(Adds timing of implementation in second paragraph.)
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