Federal Register #SR-ISE-2026-20

SEC/Nasdaq ISE Rule Change: Historical CAT Assessment 1A Fee for CAT System Cost Recovery

The Securities and Exchange Commission (SEC) is overseeing a proposed rule change by Nasdaq ISE, LLC to establish fees for recovering historical costs associated with the Consolidated Audit Trail (CAT) system. - Government Buyer: - Securities and Exchange Commission (SEC) - Nasdaq ISE, LLC (self-regulatory organization under SEC oversight) - OEMs and Vendors: - Amazon Web Services, Inc. (AWS): Cloud hosting services for CAT - Kingland Systems Corporation: Development and operation of the Customer and Account Information System (CAIS) - Exegy Incorporated: Market data services - Thesys Technologies, LLC: Initial Plan Processor for CAT - FINRA CAT, LLC (FCAT): Successor Plan Processor for CAT - Products/Services Requested: - Cloud hosting services for secure, resilient, high-volume data management (AWS) - Development and operation of CAIS for capturing and storing customer/account information (Kingland Systems) - Market data services (Exegy) - Plan Processor services for CAT, including technical support, system development, and compliance (Thesys Technologies, FINRA CAT, LLC) - Historical CAT Assessment 1A Fee: $0.000002 per executed equivalent share, invoiced monthly to CAT Executing Brokers, to recover $38,964,855.34 in historical CAT costs - Notable Requirements: - Fees recover costs incurred prior to January 1, 2022, not previously invoiced - Assessment covers technology, legal, consulting, insurance, and public relations expenses - Fee collection is based on executed equivalent shares and will continue until the full amount is recovered (estimated 24 months, but may vary) - CAT system supports regulatory oversight of securities transactions across markets - Place of Performance/Delivery: - Securities and Exchange Commission (federal office)

Description

This notice announces a proposed rule change filed by Nasdaq ISE, LLC to establish fees related to certain historical costs of the National Market System Plan governing the Consolidated Audit Trail (CAT). The fees pertain to costs incurred prior to January 1, 2022, which were not previously invoiced. The proposed fees, termed Historical CAT Assessment 1A, will be charged to Industry Members based on executed equivalent shares and are intended to cover the remaining unbilled historical costs. The rule change has been filed with immediate effectiveness and is overseen by the Securities and Exchange Commission.

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