PTG Comments on FINRA Member Affiliate Reporting Proposal
May 27, 2026
In a letter filed with the Securities and Exchange Commission (SEC) today, PTG supports FINRA’s proposal to expand the affiliate–principal transaction indicator so it also covers qualifying trades between member affiliates, arguing this is consistent with existing treatment of similar non-member affiliate trades.
The letter highlights the economically duplicative nature of these affiliate-side trades: they do not add independent price discovery or market interest because the meaningful pricing and volume information is already captured in the external-facing leg of the transaction. PTG argues that public dissemination of both legs creates noise in TRACE data, overstating activity and distorting liquidity metrics without improving valuation, pricing, or risk assessment for investors.
The letter urges the SEC to approve the proposal promptly and recommends allowing firms to begin using the indicator as soon as they are operationally ready, rather than waiting for a formal compliance date.