SEC Pounces on New ‘CAT’ Ledger for Trades

The Securities and Exchange Commission on Tuesday unanimously voted on a plan to establish a “consolidated audit trail” of trading data aimed at improving regulatory oversight of markets.

The audit trail is a response to the 2010 “flash crash” and will allow regulators to see trading activity in a central location.

All three SEC commissioners voted in favor of the plan. Commissioner Michael Piwowar, a Republican member, said at Tuesday’s open meeting that he was “pleased” with changes that had been made from the initial CAT proposal, especially on data security.

The agency submitted the full plan for public comment in April.

“With the approval and ultimate implementation of the CAT, the commission’s regulatory capacity strongly embraces 21st Century technology, enabling the commission and the [self-regulatory organizations] to harness data and technology to more effectively oversee market participants,” Chair Mary Jo White said.

She added that implementing the CAT in an “efficient, timely and cost-effective manner is an enormous undertaking that has been, and will continue to be, one of the commission’s highest priorities to complete, maintain, and enhance.”

Morning Consult