FINRA TRACE Moving from CTCI to FIX

FINRA currently support three methods for the reporting of transactions to its TRACE and OTC Reporting (ORF) products – FIX, Computer-To-Computer Interface (CTCI) and TRAQS. Subject to SEC approval, in the first quarter of 2020, FINRA would no longer support the CTCI protocol over both TCP and MQ for TRACE and ORF transaction reporting.

Any clients that currently utilise CTCI and wish to continue reporting electronically (not manually via TRAQS) would need to migrate to the FIX protocol by Monday, February 3, 2020.

For FINRA members obligated to report under FINRA Rule 6730 – Transaction Reportingfor TRACE and FINRA Rule 6622 – Transaction Reporting for ORF the existing legacy method using CTCI over either TCP or MQ is to be replaced by FIX 4.4 sessions.

The existing single CTCI connection used for Corporate, Agency and 144A Debt (CA), Securitized Products (SP) and Treasuries (TS) will need to be replaced by 3 separate FIX 4.4 sessions in order to continue electronic transaction reporting. Each FIX session requires its own port and associated specification. The same is true for ORF.

Challenges of Migration to FIX

An in-house or purchased FIX engine to replace the existing CTCI protocol

FIX experts to write to the three TRACE (CA/SP/TS) and one ORF specifications

A dedicated line (or extranet provider). VPN over the Internet only permitted in FIX Testing phase (NTF)

Highly available infrastructure for hosting FIX solutions due to reporting timeline (15 minutes for Corporate Bonds)

Ongoing support and maintenance for specification updates in response to new notices from FINRA

Development time and budget

Benefits of Inforalgo

Inforalgo has over 25 years’ experience of source/destination integration for trading efficiency and regulatory reporting

Inforalgo are experts at FIX, so you are in good hands whether migrating to FIX from CTCI or automating via FIX for the first time

Inforalgo maintain a robust and fast in-house FIX engine and dedicated line for reporting, meaning you don’t have to worry about getting the data to its destination

Inforalgo take care of connecting and maintaining the adapter/s to connect to the source/s

Far greater, real-time insight in to your data than ever before

No need to buy in costly personnel with FIX expertise to build and maintain the solution

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