Federal Register #SR-CboeBZX-2026-035

SEC Proposed Rule: CAT System Funding Fees for Industry Members

The Securities and Exchange Commission (SEC) is announcing a proposed rule change by Cboe BZX Exchange, Inc. to establish fees for industry members to fund the operation and maintenance of the Consolidated Audit Trail (CAT) system. - Government Buyer: - Securities and Exchange Commission (SEC) - OEMs and Vendors Mentioned: - Amazon Web Services, Inc. (cloud hosting) - FINRA CAT, LLC (CAT system operation) - Algoseek, LLC (market data) - WilmerHale (legal services) - Jenner (legal services) - Deloitte (consulting) - Anchin (professional/administration) - Grant Thornton (professional/administration) - Products/Services Requested: - Cloud hosting services for CAT (Amazon Web Services) - Operation and maintenance of CAT (FINRA CAT, LLC) - Market data services (Algoseek, LLC) - Legal services (WilmerHale, Jenner) - Consulting services (Deloitte) - Professional and administration services (Anchin, Grant Thornton) - Notable Requirements: - Fees are calculated under the CAT Funding Model and allocated among industry members based on executed share volume - The fee rate is $0.000001 per executed equivalent share for the specified period - The funding covers technology, legal, consulting, insurance, and administrative costs for the CAT system - No specific product part numbers or purchase quantities are listed, as this is a fee-based funding mechanism for ongoing services - Place of Performance/Delivery: - Securities and Exchange Commission, 100 F Street NE, Washington, DC

Description

The Securities and Exchange Commission has filed a proposed rule change by Cboe BZX Exchange, Inc. to establish fees for industry members related to the reasonably budgeted costs of the Consolidated Audit Trail (CAT) for the period from May 1, 2026, through December 31, 2026. The rule change involves fee adjustments for industry members concerning the CAT costs for the specified period. The fees are calculated and implemented in accordance with the CAT Funding Model as approved by the SEC. The proposal aims to ensure sufficient regulatory funding to permit the exchange to fulfill its statutory responsibilities under the Exchange Act.

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