On May 7, Consolidated Audit Trail, LLC and FINRA CAT, LLC (CAT) published a new roadmap to assist Small Firms with their reporting obligations for CAT Reportable Securities by the compliance date of December 13.
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FINRA CAT Production Readiness Certification Deadline
By Susan Light & Elise W. Michael on
Posted in Broker-Dealer
Consolidated Audit Trail, LLC (CAT) and Financial Industry Regulatory Authority CAT, LLC (FINRA) remind industry members and CAT reporting agents that the deadline to request Production Readiness Certification for the CAT CAIS LTID Production Environment is Friday, April 9.
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2021 Report on FINRA’s Examination and Risk Monitoring Program
By Susan Light on
Posted in Broker-Dealer
On February 1, the Financial Industry Regulatory Authority (FINRA) published its 2021 Report on FINRA’s Examination and Risk Monitoring Program (Report). The annual Report summarizes various findings and observations from recent FINRA examinations of its member firms on a range of topics and notes certain areas of the future focus of FINRA examinations in 2021.
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FINRA Files Proposed Rule Change to Delete the Order Audit Trail System (OATS) Rules
By Michael T. Foley & Timothy D. Kertland on
Posted in Broker-Dealer
On August 26, the Securities and Exchange Commission published notice in the Federal Register regarding proposed rule changes that the Financial Industry Regulatory Authority (FINRA) had filed with the SEC. The changes would delete the order audit trail system (OATS) rules in the FINRA Rule 7400 Series and FINRA Rule 4554 once FINRA members are…
FINRA Updates Members on Regulatory Coordination Concerning CAT Reporting Compliance
By Susan Light, Michael T. Foley & Jack A. West on
Posted in Broker-Dealer
On June 29, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 20-20, updating members on regulatory coordination efforts concerning compliance with Consolidated Audit Trail (CAT) reporting rules.
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SEC Amends CAT NMS Plan
By Susan Light, Michael T. Foley & Gregory A. Uffner on
Posted in Broker-Dealer
On May 15, the Securities and Exchange Commission adopted amendments to the national market system plan governing the consolidated audit trail (the CAT NMS Plan). The Financial Industry Regulatory Authority (FINRA) and the national securities exchanges that are CAT NMS Plan participants (the Participants) are now required to publish and file with the SEC a…
SEC Provides for Phased CAT Broker-Dealer Reporting Timelines
Posted in Broker-Dealer
On April 20, the Securities and Exchange Commission issued two orders relating to the implementation of the Consolidated Audit Trail (CAT) to address the impact of COVID-19. In the first order, the SEC allowed broker-dealers to establish a phased CAT reporting timeline, subject to certain conditions. In its second order, the SEC permitted certain introducing brokers to follow the small broker-dealer reporting timeline.
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SEC Proposes Transparency and Financial Accountability Amendments to CAT NMS Plan
Posted in Broker-Dealer
On September 9, the Securities and Exchange Commission voted to propose amendments to the national market system plan (CAT NMS Plan) governing the Consolidated Audit Trail (CAT).Continue Reading SEC Proposes Transparency and Financial Accountability Amendments to CAT NMS Plan
FINRA Issues Regulatory Notice Reminding Member Firms about CAT Reporting Deadlines
By Susan Light & Stanley V. Polit on
Posted in Broker-Dealer
On May 21, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 19-19 (Notice), which reminds applicable member firms that they must register with FINRA CAT, LLC (FINRA CAT) on or before June 27 for purposes of reporting to the Consolidated Audit Trail (CAT). This reporting requirement relates to 1) member firms or national securities exchanges that handle orders or quotes in National Market System (NMS) stocks, over-the-counter equity securities or exchange listed options (each, an Industry Member); and 2) third-party CAT reporting agents that are or will be authorized to submit data to the CAT on behalf of an Industry Member. The CAT rules do not provide for any firms to be excluded or exempted from this reporting requirement.
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Statement on Status of the Consolidated Audit Trail
By Janet M. Angstadt & Dina Wegh on
Posted in Broker-Dealer
On August 27, the Securities and Exchange Commission’s Division of Trading and Markets issued a public statement on the status of the consolidated audit trail (CAT) and the SROs’ (defined below) currently expected timetable for compliance with their obligations under the revised Plan (defined below).
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