The U.S. Securities and Exchange Commission has approved a major expansion of its Trade Compliance and Reporting Engine to include government debt, the Financial Industry Regulatory Authority said Tuesday.

Currently, TRACE reports real time pricing and trade volume information only on corporate bonds trading in the secondary market. The SEC has approved its expansion to debt issued by federal government agencies, government corporations and government sponsored enterprises, as well as primary market transactions in new issues, effective on March 1, 2010.

“Transparency is a crucial ingredient for investor participation in a market,” said FINRA chairman and chief executive officer, Richard Ketchum. “Based on our experience with corporate bonds, this expansion should help all investors, and especially retail investors, to better monitor their executions by putting immediate and accurate sales and pricing information in their hands.

IE