(Reuters) - The Securities and Exchange Commission said on Wednesday it approved the Financial Industry Regulatory Authority’s proposal to require its members to report their trades of US government securities.
The data are intended to help regulators oversee the US$13trn US Treasuries market following the “flash” rally two years ago during which bond prices swung wildly within minutes.
The cause of the event remained unclear and has raised concerns that such disruptions could become more frequent in the US Treasury market, which has been seen as the world’s safest.
In the proposal by Wall Street-funded FINRA, members would report their trades on the Trade Reporting and Compliance Engine (TRACE) for regulators to review and would not be shared publicly.
“This marks the first time a regulatory trade reporting regime has been established for a significant segment of the US Treasury market, which will enable regulators to better understand market dynamics and exercise their oversight function,” SEC Chair Mary Jo White said.
US regulators have examined whether the growth of algorithmic, high-speed trading in Treasuries might have played a role.
Reporting data on Treasuries trades may help shed light on structural changes in the market, proponents said.
Reporting by Richard Leong
