SIFMA Testimony on CAT Implementation and Cybersecurity Protocols
Lisa Dolly, chief executive officer of BNY Mellon’s Pershing LLC, and SIFMA board member, testified on SIFMA’s behalf before the…
The SEC established the Consolidated Audit Trail (the CAT) to enable regulators to track all order and trading activity throughout the U.S. markets for listed equities and options.
While operated by 25 Self-Regulatory Organizations (SROs) including equity and options exchanges, under the supervision of the SEC, the securities industry has undertaken efforts to build and stand up systems necessary to comply with the CAT, working diligently through the coronavirus pandemic and the operational changes, priorities and demands it brought. The transaction database became fully implemented in December 2021.
The SROs and industry are now working on the design and development of the customer database or CAIS which is projected to come online in mid-2022. The data within CAT has become a key regulatory tool as evidenced by the October 2021 SEC staff report on January 2021 market volatility which used CAT data to recreate and analyze the trading activity. Several critical issues remain, most importantly data security and funding. SIFMA has continually voiced concerns about the type and amount of personally identifiable information (PII) data to be reported to and maintained in the CAIS and has repeatedly offered viable alternatives that would serve the same purpose without the attendant data and privacy risk to investors. We continue to engage with the SEC on its August 2020 data security proposal which would, among other things, prohibit the bulk downloading of CAT data and would strictly and clearly prohibit the use of CAT data for any commercial purpose. We continue to advocate for a collaborative, equitable and transparent funding model for the CAT and recommended that the Commission disapprove the proposed model submitted by the SROs.
See SEC Exemptive Order for Phased Reporting Timelines with Conditional Exemption for Impacts of COVID-19 and the CATNMS Timeline
Testimony
Lisa Dolly, chief executive officer of BNY Mellon’s Pershing LLC, and SIFMA board member, testified on SIFMA’s behalf before the…
White Papers
This white paper, Industry Recommendations for the Creation of a Consolidated Audit Trail (CAT), presents SIFMA’s views on how a Consolidated…
Pennsylvania + Wall
SIFMA members have consistently supported the goals of the Consolidated Audit Trail (CAT) since its inception and have been diligently…
Back to Consolidated Audit Trail (CAT)