Investing
SEC Announces Plan to Create Consolidated Audit Trail
Published:
Last Updated:
The U.S. Securities and Exchange Commission (SEC) recently voted to approve a national market system (NMS) plan to create a single, comprehensive database known as the consolidated audit trail (CAT). Ultimately this program will enable regulators to more efficiently and thoroughly track all trading activity in the U.S. equity and options markets.
The NMS plan details the methods by which self-regulatory organizations (SROs) and broker-dealers will record and report information, including the identity of the customer, resulting in a range of data elements that together provide the complete lifecycle of all orders and transactions in the U.S. equity and options markets.
The NMS plan also sets forth how the data in the CAT will be maintained to ensure its accuracy, integrity and security.
The SEC modified several provisions of the NMS plan in response to public comments and recommendations from the SROs, including:
Mary Jo White, SEC Chair, commented:
With the approval and ultimate implementation of CAT, the Commission’s regulatory capacity strongly embraces 21st century technology, enabling the Commission and the SROs to harness data and technology to more effectively oversee market participants. Through the CAT, regulators will have more timely access to a comprehensive set of trading data, enabling us to more efficiently and effectively conduct research, reconstruct market events, monitor market behavior, and identify and investigate misconduct.
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.