Panellists spar over transparency in ABS secondary

Since bringing transparency to the asset-backed securities secondary market three years ago, the Trade Reporting and Compliance Engine (Trace) from Finra continues to spark debate among ABS traders on whether the service enhances liquidity, or if it is more disruptive than helpful. Panellists speaking on the second day of ABS East were divided on the value of the reporting engine, particularly due to the unintended consequences on more illiquid asset classes.