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SEC Reopens Decade-Old Dispute Over Trading Data
16 Apr
Summary
- SEC seeks public comment on a comprehensive review of the trading database.
- The Consolidated Audit Trail was mandated after the 2010 "flash crash".
- Brokers argue the database is costly, burdensome, and poses cybersecurity risks.
The U.S. Securities and Exchange Commission (SEC) has announced it is seeking public input on a potential review of the Consolidated Audit Trail (CAT).
This trading data database was mandated in 2012, a response to the "flash crash" event of 2010 that saw major Wall Street indexes temporarily lose nearly $1 trillion. Regulators assert the CAT is vital for identifying market manipulation and has been used in enforcement actions.
However, the CAT has been a source of controversy, delays, and litigation for over a decade. Industry brokers contend that the project imposes excessive burdens and costs. They also voice concerns about personal data security, citing risks from potential cybersecurity breaches or lapses.
