The National Association of Securities Dealers (Nasd) has gone live with its new Trace corporate bond reporting system, replacing the existing Fips product for reporting high yield debt transactions.
On 23 January, 2001, the Securities and Exchange Commission (SEC) approved rules that will require Nasd members to report over-the-counter secondary market transactions in eligible fixed income securities to the Nasd and also subject certain transaction reports to dissemination.
Trace is a regulatory system that will capture the reporting and dissemination of eligible corporate bond transactions including investment grade and high yield debt, medium term notes and convertible bonds.
Douglas Shulman, Nasd's president of regulatory services and operations, says: "In developing this system Nasd has worked closely with the SEC, Bond Market Association and the dealer community to ensure that the Trace maximises transparency, while optimising liquidity."