Publicly Disseminating Information in TRACE
The Bond Market Association (TBMA)* provides comments to the National Association of Securities Dealers, Inc. (NASD) on a proposed rule change to publicly disseminate buy/sell and customer/dealer information through NASD’s Trade Reporting and Compliance Engine (TRACE), NASD Notice to Members 06-22. Under the proposal TRACE would disseminate whether a reporting dealer’s counterparty is a customer or a dealer and whether a transaction is a buy or a sell. TBMA believes the proposal, as written, would not facilitate price transparency and have detrimental consequences for both dealers and investors.
*SIFMA is a product of the merger between the Securities Industry Association (SIA) and the Bond Market Association (TBMA) in 2006.