Opportunity
Federal Register #Release No. 34-106237, File No. 4-698
SEC Exemption Request for CAT Cost Recovery Related to FAM 4
Buyer
Securities and Exchange Commission
Posted
September 03, 2026
Identifier
Release No. 34-106237, File No. 4-698
The Securities and Exchange Commission (SEC) is considering an exemption request related to cost recovery for the Consolidated Audit Trail (CAT) system. - Government Buyer: - Securities and Exchange Commission (SEC), Division of Trading and Markets - OEMs and Vendors: - CAT LLC (Consolidated Audit Trail, LLC) - FINRA CAT (Financial Industry Regulatory Authority CAT) - Products/Services Requested: - Exemptive relief to allow recovery of technology and operating costs incurred during Period 4 of the Financial Accountability Milestones (FAM 4) - No physical products or new services are being procured; the request is for regulatory relief to recover previously incurred costs - Technology costs (non-CAIS): $364,219,549 - CAIS-related technology costs: $99,307,505 - Other operating costs: $26,624,090 - Total costs: $490,151,144 - Unique or Notable Requirements: - Exemption from a 100% penalty for delayed completion of the Customer and Account Information System (CAIS) - Request to recover approximately $260.6 million of non-CAIS FAM 4 costs from Industry Members - Shortened historical recovery period of one year (instead of minimum 24 months) to meet billing deadline - SEC is seeking public comment on the exemption request - No procurement of new products or services; focus is on regulatory and financial relief for cost recovery
Description
This notice pertains to a request for exemption related to the National Market System Plan governing the Consolidated Audit Trail (CAT). The exemption request concerns the recovery of costs incurred during Period 4 of the Financial Accountability Milestones (FAM 4). The request seeks relief from penalties that would otherwise prevent recovery of certain costs related to the operation and implementation of the CAT transactional database and related systems. The Securities and Exchange Commission is providing an opportunity for public comment on this exemption request.