SIE Exam Question 895: Answer and Explanation

Question: 895

Which of the following is the FINRA-developed vehicle that facilitates the mandatory reporting of over-the-counter secondary market transactions in eligible fixed income securities? All broker-dealers who are FINRA member firms have an obligation to report transactions in corporate bonds to this vehicle under an SEC-approved set of rules.

• A. ACT
• B. AML
• C. CTR
• D. TRACE

Correct Answer: D

Explanation:

TRACE (Trade Reporting Compliance Engine) is the FINRA-developed vehicle that facilitates the mandatory reporting of over-the-counter secondary market transactions in eligible fixed income securities. All broker-dealers who are FINRA member firms have an obligation to report transactions in corporate bonds to TRACE under an SEC-approved set of rules.