The national securities exchanges in the U.S. and the Financial Industry Regulatory Authority (FINRA), collectively known as the self-regulatory organizations (SROs), began distributing a cost study questionnaire regarding the financial impact of anticipated consolidated audit trail (CAT) reporting requirements for broker-dealers.
The study is part of the U.S. Securities and Exchange Commission’s (SEC) requirement for SROs to implement and maintain the CAT. Deloitte & Touche will act as the third-party facilitator for the study, and the results will be presented to the SROs as aggregated, anonymous data. In addition to trying to determine the baseline costs of the project for regulatory reporting, the study also seeks input on the costs and benefits of the creation, implementation and maintenance of the CAT.
The SROs have requested that recipients return the completed questionnaire by August 6, 2014.
“The SEC is requiring the SROs to develop the CAT, and we are mindful that the project will impact a broad group of market participants who will need to comply with the new reporting requirements,” says BATS’ Jeff Wells, speaking on behalf of the SROs. “We think it’s important to ask for targeted industry feedback so that we may thoughtfully make the CAT as efficient and cost-effective as possible for U.S. market participants while meeting the SEC’s requirements. We hope that all firms that will eventually have reporting requirements to the CAT will provide us with their thorough, valuable insights for this survey.”
SROs Distribute Questionnaire on CAT Costs
The national securities exchanges in the U.S. and the Financial Industry Regulatory Authority (FINRA), collectively known as the self-regulatory organizations (SROs), began distributing a cost study questionnaire regarding the financial impact of anticipated consolidated audit trail (CAT) reporting requirements for broker-dealers.