The NASD has announced a postponement of the Trade Reporting and Compliance Engine (TRACE) implementation date (see NASDR website: http://www.nasdr.com/press_frame.htm). As a result, NSCC’s interface to the TRACE system will also be delayed.

TRACE was scheduled to go into production on February 4, 2002. Participants were expected to make testing arrangements by November 1, 2001 and to test from December 1, 2001 – January 31, 2002. (NSCC’s interface to TRACE is outlined in Important Notices A #5240, dated March 19, 2001; A#5274, dated June 7, 2001; and A#5285, dated July 3, 2001).

NSCC will coordinate TRACE testing, conduct awareness seminars and handle implementation when a new timetable is introduced for TRACE. NSCC will issue Important Notices to inform participants of these events.

Any questions regarding the NSCC interface to TRACE can be directed to your Relationship Manager or the undersigned at (212) 855-5683.

Ed Fanning
Vice President, Product Marketing and Development