• Thu. May 13th, 2021

SEC Adopts Amendments to the CAT NMS Plan to Improve Transparency and Financial Accountability

SEC Adopts Amendments to the CAT NMS Plan to Improve Transparency and Financial Accountability

Washington, DC (STL.News) The Securities and Exchange Commission today voted to adopt amendments to the national market system plan governing the consolidated audit trail (the “CAT NMS Plan”) to bring additional transparency, governance, oversight, and financial accountability to its implementation.

The amendments to the CAT NMS Plan require the Financial Industry Regulatory Authority (FINRA) and the exchanges, the self-regulatory organizations that are participants to the CAT NMS Plan (the “Participants”), to publish and file with the Commission a complete implementation plan for the Consolidated Audit Trail (“CAT”) and quarterly progress reports.  Each of the reports must be approved by the Operating Committee established by the CAT NMS Plan and submitted to the CEO, President, or an equivalently situated senior officer at each Participant.  In addition, the amendments include financial accountability provisions that establish target deadlines for four critical implementation milestones and reduce the amount of fee recovery available to the Participants if those target deadlines are missed.

“Today’s amendments are another significant step in our efforts to bring both much-needed transparency and accountability to CAT’s implementation,” said SEC Chairman Jay Clayton.  “These amendments build upon other recent Commission actions relating to the CAT designed to enable the SROs, in conjunction with the broker-dealers, to focus on bringing a functional, more secure CAT online.”

The amendments will become effective 30 days after publication of the adopting release in the Federal Register.

Marty Smith

Marty Smith

Marty Smith is the acting Editor in Chief as well as the founder of STL.News, DirectSourceNews.org, and St. Louis Restaurant Review. Additionally, Smith is the IT Manager responsible for STL.News and affiliate sites. Smith has created multiple aggregator sites to manage the large amount of content used to select which content to published on STL.News. As Editor in Chief, Smith is responsible for the content posted on the network with the help of the publishing team, which is located around the globe.