SEC “has overstepped its statutory authority and failed to handle investor and trade considerations, leaving us no selection however to litigate,” they stated.
The American Securities Association and Citadel Securities have collectively petitioned the U.S. Court of Appeals for the eleventh Circuit to evaluation the Securities and Exchange Commission’s implementation of the Consolidated Audit Trail, “in response to widespread investor concerns about transparency, governance, costs and data privacy.”
The SEC, Citadel Securities and ASA asserted in a joint assertion, “has overstepped its statutory authority and failed to address investor and industry concerns, leaving us no choice but to litigate.”
“ASA has, for years, been a leading advocate against the CAT and its collection of the personal and financial information of every American investor,” the group stated.
ASA additionally applauded the bicameral introduction of the Protecting Investors’ Personally Identifiable Information Act, in addition to letter to Congress from a number of state attorneys common urging the safety of investor privateness.
Speaking concerning the standing of the Consolidated Audit Trail’s transaction database on Oct. 12, Financial Industry Regulatory Authority CEO Robert Cook stated, “Mission accomplished.”
Cook additionally signaled that paring again the quantity of knowledge collected through CAT could also be warranted.
“If you go back and think about what was the purpose of CAT — coming out of the flash crash, the SEC wasn’t in a position to reconstruct what happened; it didn’t have the data available,” Cook stated throughout feedback on the Securities Traders Association’s annual Market Structure Conference, held in Washington.
While there are “tons of problems that people raise with CAT,” Cook defined, “overall, the transactional database has been very successful in meeting those goals.”
As for “legitimate” privateness considerations associated to CAT, Cook stated, it’s “never too late to do the right thing. Just because we’re there now doesn’t mean we can’t say, ‘Maybe we went too far. Let’s go back and collect less data and really shrink the footprint of that.’”
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