All broker-dealers who are FINRA member firms have an obligation to report transactions in TRACE-eligible securities FINRA is the Financial Industry Regulatory Authority, a non-governmental regulator of the entire securities industry. It was formed in the summer of 2007 from the NYSE and the NASD.
There are several categories of securities in TRACE:
- BTDS: corporate bonds (U.S. dollar-denominated, investment grade and high yield).
- ATDS: US government agency bonds.
- SPDS: securitized products including asset-backed securities and mortgage-backed securities. WRDS separates SPDS by Sub-Product Type into SPDS-ABS, SPDS-CMO, SPDS-MBS, SPDS-TBA.
- BTDS144A: corporate bonds falling under Rule 144a of the Securities Act of 1933.
- SPDS144A: securitized products falling under Rule 144a of the Securities Act of 1933.
WRDS purchases licenses to TRACE on behalf of our subscribers so TRACE is free for all academics.
