On November 15, 2016 The SEC approved the CAT NMS Plan, which governs the creation and operation of the Consolidated Audit Trail (CAT).

What is it?

The CAT will be the largest comprehensive data repository for securities transactions to date, processing more than 58 billion records (10 terabytes of data) daily. The CAT will collect daily order and trade data for equities and options, across all trading venues into a single database.

Every order, quote and event in the trade life cycle of NMS Securities will need to be reported. Data will be submitted daily by broker-dealers and Exchanges.

Why is it needed?
Once built, the CAT will enable regulators to efficiently and effectively perform market reconstructions using a central data repository that stores standardized data.

Who does it impact?
Broker Dealers, Clearing Firms and Exchanges (SROs). The CAT will impose new and additional regulatory reporting requirements on broker-dealers who trade in US equity and options markets, and require changes to their own processes and systems to comply with the CAT rules.

What are the timescales?
On November 15, 2016, the SEC approved the CAT plan, starting the countdown for data reporting.

  • Exchanges report data to the CAT by November 2017
  • Large broker-dealers report data to the CAT by November 2018
  • Small broker-dealers report data by November 2019

Please give us a call to find out how we can help your firm navigate through this major regulatory initiative.

Global Market Advisory Group (908) 219-4310