What is the Consolidated Audit Trail (CAT)?

The Consolidated Audit Trail (CAT) is a trading database mandated by the SEC in 2012 to help regulators spot market manipulation.

Why is the SEC reviewing the CAT?

The SEC is seeking public comment on a potential review of the CAT due to ongoing controversies, delays, and litigation, and to address concerns about its funding, purpose, structure, governance, design, scope, and cybersecurity.

What are the main concerns raised by brokers regarding the CAT?

Brokers argue that the CAT is unnecessarily burdensome and costly, and they express concerns about personal data being at risk from potential cybersecurity hacks or lapses.

Home / Business and Economy / SEC Reopens Decade-Old Dispute Over Trading Data

SEC Reopens Decade-Old Dispute Over Trading Data

16 Apr

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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.

SEC Reopens Decade-Old Dispute Over Trading Data

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.

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