Federal Register #SR-Phlx-2026-24

SEC oversees Nasdaq PHLX LLC rule change to establish CAT fees for industry members

This opportunity involves the Securities and Exchange Commission (SEC) overseeing Nasdaq PHLX LLC's proposed rule change to establish fees for industry members to cover the reasonably budgeted costs of the Consolidated Audit Trail (CAT) for an eight-month period. - Government Buyer: - Securities and Exchange Commission (SEC), Division of Trading and Markets - OEMs and Vendors Mentioned: - Amazon Web Services, Inc. (AWS) - Algoseek, LLC - FINRA CAT, LLC (FCAT) - WilmerHale - Jenner - Deloitte - Anchin - Grant Thornton - Products and Services Requested: - Cloud hosting services (AWS): storage, databases, compute, networking, management tools, DevOps tools - Market data services (Algoseek): data elements required by the CAT NMS Plan - Operating services (FINRA CAT): system operation, compliance, security, user support - Legal services (WilmerHale, Jenner): compliance, policy drafting, litigation support - Consulting services (Deloitte): budget analysis, operational support - Professional/administration services (Anchin, Grant Thornton): accounting, administrative support - CAT Fee 20261: fee charged to industry members for regulatory costs related to CAT operation and maintenance - Notable Requirements: - Fees are calculated at $0.000001 per executed equivalent share, charged monthly to CAT Executing Brokers - Compliance with the CAT NMS Plan and SEC Rule 613 is required - Budgeted costs are based on historical invoices, contractual terms, anticipated service levels, and vendor discussions - Total CAT costs for the period are approximately $15.15 million - Place of Performance/Delivery: - Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090

Description

Nasdaq PHLX LLC has proposed a rule change 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. These fees are intended to cover costs incurred by CAT LLC for the development, implementation, and operation of the CAT as approved by the Operating Committee. The proposal was filed with the Securities and Exchange Commission (SEC) and is effective immediately. The fees will be calculated based on executed equivalent shares and are part of the Exchange's fee schedule under Consolidated Audit Trail Funding Fees.

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