Trade Reporting And Compliance Engine - TRACE


DEFINITION of 'Trade Reporting And Compliance Engine - TRACE'

A program developed by the National Association of Securities Dealers (NASD) which allows for the reporting of over-the-counter (OTC) transactions pertaining to eligible fixed-income securities. Brokers, who are NASD members and deal with specific fixed-income securities, are required to report their transactions by Securities and Exchange Commission (SEC) rules.

BREAKING DOWN 'Trade Reporting And Compliance Engine - TRACE'

From 1998-2001, the SEC approved rules adopted by the NASD regarding the transactions in all U.S. corporate bonds and secondary OTC fixed-income transactions. These rules were developed to bring greater price transparency to bond markets. Subsequently, TRACE was brought into play in 2002 to comply with the newly approved rules. The program replaced the previous Fixed Income Pricing System (FIPS) used since 1994.

  1. Compliance Program

    The internal programs and policy decisions made by a company ...
  2. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  3. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context ...
  4. Corporate Bond

    A debt security issued by a corporation and sold to investors. ...
  5. Fixed-Income Security

    An investment that provides a return in the form of fixed periodic ...
  6. National Association Of Securities ...

    The NASD was a self-regulatory organization of the securities ...
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