FR 2956
Treasury Securities and Agency
Debt and Mortgage-Backed Securities
Reporting Requirements
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The following is a link to the FINRA web site. The Federal Reserve Board does not maintain the information on this site.
https://www.finra.org/filing-reporting/trace
Instructions:
Description:
The FR 2956 collects detailed data on depository institutions' daily transactions of marketable U.S. Treasury securities and of the debt and mortgage-backed securities (MBS) issued by U.S. agencies. The report has two parts. Part 1 collects data on transactions in U.S. Treasury debt and Part 2 collects transactions in debt and MBS issued by agencies. Depository institutions subject to the reporting requirements of the FR 2956 report transactions through the Board's data collection vendor, the Financial Industry Regulatory Authority (FINRA), utilizing its Trade Reporting and Compliance Engine (TRACE). Each reporting depository institution needs to comply with the TRACE technical specifications and requirements necessary for reporting the required transactions.
OMB Control Number:
7100-0383
Purpose:
The FR 2956 is a product of the continued efforts by the Treasury Department and the Board to develop efficient and effective ways of collecting comprehensive Treasury market transaction information from depository institutions subject to the Board's reporting requirements. Collecting this information in an event-driven manner from depository institutions that are not FINRA members but that are active in the Treasury market allows a more complete analysis of the Treasury trading data and helps identify and address potential anomalies in the market for Treasury securities. This helps the Board and the Federal Open Market Committee (FOMC) understand frictions and disruptions in the market that would affect the implementation of monetary policy.
In connection with these efforts, the Board also collects data on transactions in debt securities and MBS issued by agencies. Collecting this transaction data in an event-driven manner helps the Board and FOMC better monitor and interpret fluctuations in supply and demand as well as interest rate movements in these key credit aggregates.
Background:
The U.S. Treasury securities market is the deepest and most liquid government securities market in the world. Treasury securities play a critical and unique role in the global economy, serving as the primary means of financing the U.S. federal government, a significant investment instrument and hedging vehicle for global investors, a risk-free benchmark for other financial instruments, and an important market for the Federal Reserve’s implementation of monetary policy. Treasury securities are traded by broker-dealers that are registered with the U.S. Securities and Exchange Commission and are members of FINRA, as well as by commercial bank dealers and principal trading firms. Several agencies under a range of authorities are responsible for regulating various components of the Treasury securities market and its participants.
Agency debt and MBS are included as high-quality liquid assets for purposes of liquidity requirements adopted by the Federal banking agencies, and these securities play a key role in housing finance, one of the more interest-rate sensitive sectors of the U.S. economy and an important channel of monetary policy transmission.
Respondent Panel:
The FR 2956 panel comprises depository institutions that meet the reporting thresholds and daily transact in trading of marketable U.S. Treasury securities and the trading of the debt and MBS issued by agencies. Prime brokers or depository institutions who file Form G FIN and are FINRA members acting as an executing broker and that therefore already are subject to TRACE reporting pursuant to FINRA rules will be excluded from the respondent panel.
Frequency:
Reporting transactions will be event-generated and estimated to occur daily.
Public Release:
The data received from this information collection will be included in the various current or future TRACE data products available to market participants, such as data feeds, end-of-day TRACE transaction file, TRACE enhanced historical data, market aggregate statistics, and TRACE Fact Book.