New reporting requirements for TRACE and OATS in 2011
Market surveillance continues to be a strategic focus area for securities regulators, which is evident in the increasing regulatory reporting obligations of broker/dealers by regulatory authorities, such as Financial Industry Regulatory Authority (“FINRA”).
- Why needed: Provide more transparent markets for regulators, brokers/dealers and investors
- What this means to the broker/dealer industry: Potential changes or enhancements to current reporting systems
- What could broker/dealers be asking themselves relative to the recent regulator focus areas and these new rule changes, as described below:
- What is my regulatory track record with trade reporting (e.g., any recent disciplinary actions)?
- How do my current resources (e.g., regulatory and IT personnel) align to the changing trade reporting requirements?
- Have my change management processes, associated with the rule(s) changes, been effectively tested?
- Am I operating with sufficient preventative and detective controls to monitor effectively my new trade reporting requirement?
This report presents a summary of Trade Reporting and Compliance Engine (“TRACE”) and Order Audit Trail System (“OATS”) rules background, upcoming rule changes and potential challenges that broker/dealers may face with respect to regulatory compliance, including considerations for taking on these challenges.
Read the attachment to learn more.