Statement Summary
The SEC has issued a concept release seeking public input for a comprehensive review of the Consolidated Audit Trail (CAT) and related data sources used in U.S. securities market regulation. Comments are invited on various aspects including CAT funding, design, governance, and cybersecurity concerns. SEC Chairman Paul S. Atkins highlighted the progress made in reducing CAT operating costs by over $100 million and eliminating the reporting of personal information. The release aims to foster dialogue and gather insights from the public about regulatory balance regarding privacy and security. The comment period will last for 60 days following its publication in the Federal Register, providing an opportunity for stakeholders to share their perspectives on necessary regulatory actions concerning the CAT.
Original Statement
The Securities and Exchange Commission today issued a concept release soliciting public comment in support of a comprehensive review of the Consolidated Audit Trail (CAT) and other audit trails and related data sources currently used in the regulation of U.S. securities markets. The concept release seeks comment on topics including, but not limited to, CAT funding and cost management, the regulatory purpose of the CAT, the structure and governance of the CAT, the design and scope of the CAT, and the cybersecurity and data privacy of the CAT and other audit trails and related data sources, as well as comments regarding the appropriate balance between privacy and confidentiality considerations, civil liberties protections, and regulatory need.
“Under my leadership, the Commission has made meaningful progress to reform the CAT and strike a better balance between regulatory use, costs, funding, and security considerations,” said SEC Chairman Paul S. Atkins. “Over the last year, the Commission has issued exemptive relief and approved amendments to the national market system plan governing the CAT that have, among other benefits, reduced the CAT’s projected annual operating costs by over $100 million and permanently eliminated the reporting of personal identifiable information to the CAT.”
“However, we can – and must – do more,” Chairman Atkins continued. “Accordingly, the concept release seeks comment on foundational and existential aspects of the CAT. The Commission is aware of the need to address many aspects of the CAT, and public comment is a crucial piece of the comprehensive review currently under way.”
Jamie Selway, Director of the SEC’s Division of Trading and Markets, said, “The Division is looking forward to engaging with the public with respect to our comprehensive review of the CAT. We anticipate that the concept release issued by the Commission today will provoke meaningful dialogue.”
SEC concept releases are a means for the Commission to obtain public input on policy topics in advance of pursuing any related regulatory action. Concept releases typically outline a topic of interest, identify potential options, and raise specific questions for public commenters to consider. In this concept release, the Commission welcomes comment on possible regulatory responses related to topics identified in the release or otherwise proposed by commenters with respect to the CAT, including comments on any costs, burdens, or benefits that may result from such regulatory responses.
The public comment period will remain open for 60 days following publication of the concept release in the Federal Register.
