The SEC may also take into account whether or not to determine a charge schedule for Consolidated Audit Trail charges.
In an open assembly on Wednesday, the Securities and Exchange Commission plans to contemplate whether or not to undertake a proposed modification to the National Market System Plan governing the Consolidated Audit Trail to implement a revised funding mannequin for CAT.
According to a discover on the SEC’s web site, the company may also take into account whether or not to ”set up a charge schedule for CAT charges for the self-regulatory organizations which are contributors to the CAT NMS Plan in accordance with the Executed Share Model.”
CAT is the SEC-mandated central repository of trades, quotes and orders for all U.S. exchange-listed and over-the-counter fairness securities and U.S. exchange-listed choices contracts throughout all U.S. markets and buying and selling venues.
As of March 17, traders’ private identifiable info, or PII, grew to become accessible through the CAT.
Securities Industry and Financial Markets Association president and CEO Ken Bentsen mentioned in January that letting such PII change into accessible amounted to the SEC’s failure to implement adjustments to guard investor privateness.
In a letter to the SEC Tuesday, SIFMA Asset Management Group, like different commenters, mentioned that it “is very concerned about the ever-escalating CAT costs and the lack of any mechanism to help control such costs. Regardless of who ultimately pays for CAT funding, the costs will have an economic impact on trading. Asset managers, therefore, share the significant concerns about the lack of an independent cost review mechanism for the CAT budget, which would help ensure that future CAT fees are fair and reasonable.”
According to SIFMA, “suggestions have been made by commenters on different approaches to help manage CAT costs, yet all of these suggestions have been disregarded by the participants. Given that there is no end date for the CAT, SIFMA AMG believes that it is critically important for the CAT to have an independent cost review mechanism to help ensure that the CAT engages in appropriate and cost-effective spending, consistent with the Exchange Act.”
The group added, “Unless the Commission can demonstrate that it has fully considered the ultimate economic impacts of the CAT Funding Proposal, including the impacts on end-investors as a result of passed-through costs, the Commission should not approve it.”
CAT has additionally confronted scrutiny from lawmakers.
As a part of the Senate Appropriations Committee’s monetary providers and normal authorities 2024 appropriations invoice, senators expressed concern concerning the SEC’s CAT, which they mentioned “continues to collect an increasing amount of market-sensitive data and customer information including through” the system.
The committee mentioned then that it encourages the SEC “to ensure the CAT has adequate breach notification policies in place so affected participants are promptly notified of critical security events,” and directed the company to “provide a briefing data security enhancements to the CAT National Market System [NMS] Plan.”
A invoice launched on July 13 within the House would prohibit the SEC from requiring the CAT to gather personally identifiable info.
