Federal Register #SR-MEMX-2026-10

SEC Review of MEMX LLC Proposal for CAT Funding Fees and Associated Services

The Securities and Exchange Commission (SEC) is reviewing MEMX LLC's proposed rule change to establish fees for industry members to cover the reasonably budgeted costs of the Consolidated Audit Trail (CAT) for a defined period. - Government Buyer: - Securities and Exchange Commission (SEC), Division of Trading and Markets - OEMs and Vendors: - Amazon Web Services, Inc. (AWS) (cloud hosting) - Algoseek, LLC (market data) - WilmerHale (legal services) - Jenner (legal services) - Deloitte (consulting services) - Anchin (professional and administration services) - Grant Thornton (professional and administration services) - Products/Services Requested: - Cloud hosting services for CAT (AWS) - Market data services (Algoseek) - Legal services (WilmerHale, Jenner) - Consulting services (Deloitte) - Professional and administrative support (Anchin, Grant Thornton) - CAT Funding Fees (charged to industry members at $0.000001 per executed equivalent share) - Notable Requirements: - Compliance with SEC Rule 613 and the CAT NMS Plan - Use of AWS for secure, scalable cloud hosting - Budgeted costs include technology, legal, consulting, insurance, and administrative expenses - A 25% reserve is maintained for financial stability - Fees are billed monthly to CAT Executing Brokers (buyers and sellers) - The fee recovers approximately two-thirds of the total CAT budget, with the remainder funded by Participants - Estimated contract value for the period is approximately $15.15 million - Place of performance and contracting office: SEC Headquarters, 100 F Street NE, Washington, DC

Description

This notice announces a proposed rule change filed by MEMX LLC to establish fees for industry members related to the reasonably budgeted costs of the Consolidated Audit Trail (CAT) under the National Market System Plan. The fees cover the period from May 1, 2026, through December 31, 2026, and include costs associated with data feeds, cloud hosting services, legal and consulting fees, and other operational expenses necessary for the development, implementation, and operation of the CAT. The proposal aims to enhance transparency and competition by providing up-to-date information about data feeds and regulatory compliance. Comments on the proposal are invited and must be submitted by June 5, 2026.

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