Finra plans to add more detail to Trace reports

New York, June 18 - The Financial Industry Regulatory Authority, Inc. said it is planning to add additional information to transactions reported on Trace.

The new rule would require data showing whether a trade is inter-dealer or with a customer, and whether the Finra member is a buyer or a seller.

Finra said that dealers need the additional information to compare prices and to comply with their best-execution obligations under NASD Rule 2320, the fair and reasonable mark-up/mark-down requirements under NASD Rule 2440, NASD IM-2440-1, NASD IM-2440-2, and other provisions of federal securities laws.

Investors would be able to compare prices and request better, lower prices, Finra added.

Finra also noted that it believes dealers must have the extra data under a July 2007 interpretation on mark ups for debt prices.

Similar data is already disseminated for municipal bond trades.

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