The Securities and Exchange Commission (SEC) today approved amendments to the 2016 National Market System Plan for the Consolidated Audit Trail (CAT), a critical tool for market surveillance and enforcement. The approved changes are projected to save $21 million annually while maintaining CAT’s core functionality.
The amendments focus on two key areas:
- Equity Options Quotes: Revised requirements for linking market maker quotes.
- Data Management: Adjustments to storage and retention requirements.
Supporting Market Integrity
SEC Chair Gary Gensler emphasized the importance of CAT in ensuring fair and orderly markets, stating, “The CAT is essential for identifying and addressing market misconduct, including front running, market manipulation, and insider trading.”
The Commission acknowledged additional cost-saving suggestions from commenters, which were not addressed in this order but remain under consideration for future evaluation.
Continuous Improvement
Highlighting the evolving nature of markets and technology, the SEC noted the importance of regularly assessing CAT requirements to ensure the system remains cost-effective without compromising its regulatory purpose.
This amendment reflects the SEC’s commitment to balancing efficiency with its mission to uphold market integrity and investor protection.
