Federal Register #SR-FINRA-2026-009

SEC Notice of Proposed Rule Change by FINRA to Amend TRACE Rules for Affiliate Transactions

This opportunity involves a regulatory notice from the Securities and Exchange Commission (SEC) regarding a proposed rule change by the Financial Industry Regulatory Authority, Inc. (FINRA). - Government Buyer: - Securities and Exchange Commission (SEC) - Financial Industry Regulatory Authority, Inc. (FINRA) - No OEMs or commercial vendors are mentioned; this is a regulatory action, not a procurement. - Products/Services Requested: - No products, services, part numbers, or quantities are listed; the notice pertains to a rule amendment. - Notable Requirements: - Proposed amendment to FINRA Rule 6700 Series (TRACE) - Expansion of the Non-Member Affiliate-Principal Transaction Indicator to include member affiliates - Aims to improve transparency and streamline reporting of affiliate transactions in TRACE-Eligible Securities - Suppression of transaction information that does not add value for pricing, valuation, or risk evaluation - The notice invites public comment on the proposed rule change.

Description

The Securities and Exchange Commission has filed a notice regarding a proposed rule change by FINRA to amend the TRACE rules to expand the scope of the Non-Member Affiliate-Principal Transaction Indicator to include member affiliates. This amendment aims to improve transparency in TRACE-Eligible Securities by streamlining dissemination of transactions between a member and its member affiliate. The proposed rule change will allow suppression of transaction information that does not add value for pricing, valuation, or risk evaluation purposes. The proposal is intended to capture transactions between member affiliates acting as principal within the same trading day, at the same price, and in the same security as a transaction executed by one of the members with another contra-party.

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