SEC's final Consolidated Audit Trail plan

At a glance

SEC's final Consolidated Audit Trail plan

Ten key points from the final Consolidated Audit Trail plan.

The SEC recently approved a plan to establish a Consolidated Audit Trail (CAT), one of the world's largest data repositories that will contain a complete record of all equities and options traded in the US. The plan will require national securities exchanges and FINRA, alternative trading systems, and broker-dealers to submit information on trade events, including customers and prices, to the CAT on a daily basis.The approval of the plan is an important milestone towards full operation of the CAT, which is projected by the end of 2019.

1. No specified end date for duplicative reporting.

2. Technical specifications still to come. 

3. Broker dealers still expected to fund brunt of operating costs.

4. CAT governance structure expanded, but still no operating role for broker-dealers.

5. Broker-dealers will not have access to data. 

6. Industry still asking how regulators will use data. 

7. Customer identification process simplified.

8. Standards raised for data security. 

9. Time synchronization shortened for exchanges. 

10. No change to implementation timeline. 


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