TBMA Submits Comments to the SEC on Proposal of Fees for TRACE

The Bond Market Association (TBMA)* provides comments to Securities and Exchange Commission (SEC) on a proposal relating to permanent approval of fees for the Trade Reporting and Compliance Engine (TRACE), File No. SR-NASD-2003-157. The proposal by the National Association of Securities Dealers, Inc. (NASD)would amend Rule 7010(k) relating to fees for the TRACE system, and to establish a permanent TRACE fee structure prior to the expiration of the pilot program for fees on January 31, 2004.TBMAurges theSEC not to approve the Permanent Fee Proposal until the NASD provides theSEC and the industry with a detailed accounting of developmental and operating expenses for the TRACE system and revenues generated from TRACE fees to date.