The Financial Industry Regulatory Authority (FINRA) will start charging for reporting trades in U.S. Treasuries.
The U.S. self-regulatory organization addressed a number of financial and operational issues at its first board of governors meeting in 2020, which was held remotely.
Among other things, the board approved the allocation of fines that were collected in the previous year to various capital initiatives. The details of those allocations will be revealed in a future report.
The board also approved a plan to begin charging transaction fees on trades in U.S. Treasuries that must be reported to its Trade Reporting and Compliance Engine (TRACE).
The proposal to start charging fees must be approved by the U.S. Securities and Exchange Commission (SEC) after going through a public comment period.
FINRA noted that it has, so far, financed TRACE reporting for Treasuries through its fine collections, without charging fees.
“The fee proposal would recoup FINRA’s costs relating to the TRACE for Treasuries program,” it noted.
The SRO also reported that its board approved proposed changes to its systems and operations to ensure oversight in the Consolidated Audit Trail (CAT) environment.
“As industry members begin reporting to the CAT, the changes approved at the board meeting will enable FINRA to integrate this data into its surveillance patterns and other applications and to adapt its examination programs,” it said.