Proposed Rule Change Relating to the Expansion of TRACE

SIFMA’s Capital Markets Group provides comments to the Securities and Exchange Commission (SEC) on the Financial Industry Regulatory Authority (FINRA) proposed rule change relating to the expansion of TRACE, File No. SR-FINRA-2009-010. In the filing, FINRA proposed to expand TRACE reporting to include 1) transactions in certain securities that are issued or guaranteed by a government-sponsored enterprise (GSE) or a U.S. government agency, and 2) primary market transactions in TRACE-eligible securities. We support efforts by FINRA and by the SEC to increase transparency, and thereby market integrity and investor protection, in the fixed income markets.