Trade reporting and compliance engine
From Wikipedia, the free encyclopedia
Trade reporting and compliance engine (TRACE), is a United States financial reporting regulation and related system for publicly reporting bond transactions.
Unlike stocks, which generally trade transparently on public exchanges, corporate bonds and structured products trade "over-the-counter", meaning they are private transactions between individual counterparties, and so the transactions were generally not publicly reported. To create better transparency into the bond market, the Securities and Exchange Commission under the Rule 6200 Series instituted the trade reporting and compliance engine (TRACE). TRACE has two major aspects:
- rules that describe which bond transactions must be publicly reported and when;
- a technology platform that gathers transaction data and makes it available to the public.[1]