The SEC signs amendment to bring “much-needed transparency and accountability to CAT”

From: RegTech Analyst

US markets regulator Securities and Exchange Commission (SEC) has amended the national market system plan governing the consolidated audit trail, the so-called CAT NMS Plan, to make it more transparent and to boost accountability.

The changes will force the Financial Industry Regulatory Authority (FINRA) and the exchanges, the self-regulatory organisations that are participants to the CAT NMS Plan to publish and file with the SEC a complete implementation plan for the Consolidated Audit Trail (CAT) and quarterly progress reports.

These reports must be approved by the Operating Committee established by the CAT NMS Plan and submitted to the CEO, president, or an equivalently situated senior officer at each company.

Additionally, the amendments include financial accountability provisions that establish target deadlines for four critical implementation milestones and reduce the amount of fee recovery available to the Participants if those target deadlines are missed.

“Today’s amendments are another significant step in our efforts to bring both much-needed transparency and accountability to CAT’s implementation,” said Jay Clayton, chairman of the SEC. “These amendments build upon other recent Commission actions relating to the CAT designed to enable the SROs, in conjunction with the broker-dealers, to focus on bringing a functional, more secure CAT online.”

The amendments will become effective 30 days after publication of the adopting release in the Federal Register.

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