Federal Register #Release No. 34-105107, File No. 4-698

SEC Approval of Amendment to Consolidated Audit Trail Plan – Cost-Saving Measures and Regulatory Relief

This SEC order announces the approval of an amendment to the National Market System Plan for the Consolidated Audit Trail (CAT), impacting regulatory operations rather than initiating a procurement. - Government Buyer: - Securities and Exchange Commission (SEC) - Amendment submitted by Consolidated Audit Trail, LLC (CAT LLC) on behalf of multiple self-regulatory organizations (SROs) and exchanges - Affected Entities: - Major exchanges and SROs, including Cboe, Nasdaq, NYSE, and FINRA - Key Amendment Details: - Implements cost-saving measures for CAT operations - Deletion of customer data older than three years - Reduction in cloud hosting fees - Changes to reporting requirements and processing timelines (e.g., interim CAT Order-ID, late data re-processing) - Estimated annual cost savings: $55 million to $73 million - Maintains core regulatory functions of the CAT - Regulatory Relief: - Grants exemptive relief from certain recordkeeping and data retention requirements under the Exchange Act - No procurement of products or services is involved; this is a regulatory action affecting CAT operations and compliance requirements.

Description

The Securities and Exchange Commission (SEC) has issued an order approving an amendment to the National Market System Plan governing the Consolidated Audit Trail (CAT). This amendment aims to implement various cost-saving measures to reduce the operational costs of the CAT, including changes to data storage, reporting requirements, and processing timelines. The order reflects the SEC's findings that the amendment is in the public interest and supports market transparency and regulatory efficiency. The amendment is expected to yield significant annual cost savings while maintaining the CAT's core regulatory functions.

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