SEC Approves Funding Amendment to National Market System Plan Governing the Consolidated Audit Trail
The Securities and Exchange Commission approved an amendment to the National Market System Plan governing the Consolidated Audit Trail, adopting the Executed Share Model for funding, with no fraud or charges involved.
The Securities and Exchange Commission approved an amendment to the National Market System Plan governing the Consolidated Audit Trail, adopting the Executed Share Model for funding. The amendment establishes a framework for plan participants to recover costs associated with building and operating the CAT. No specific dollar amounts or charges were mentioned in the document.
The Securities and Exchange Commission approved an amendment to the National Market System Plan governing the Consolidated Audit Trail, adopting the Executed Share Model for funding. This regulatory action defines how self-regulatory organizations will allocate and recover the costs associated with building, operating, and maintaining the CAT. The amendment establishes a framework for plan participants to recover costs associated with building and operating the CAT. The change aims to ensure a fair recovery of costs associated with the CAT, with SROs submitting Section 19(b) filings to impose fees on industry members. No specific dollar amounts were disclosed in the approval, but details on budgeted costs and prior cost allocations will be included in subsequent filings. The amendment became effective immediately upon SEC approval and will be published in the Federal Register.
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- person gary gensler
- agency Securities and Exchange Commission
- Securities and Exchange Commission approved amendment to the National Market System Plan governing the Consolidated Audit Trail
- Amendment adopts revised funding model called Executed Share Model
- Amendment establishes fee schedule for CAT fees for self-regulatory organizations participants
- Gary Gensler said regulators lacked a consolidated view of the material information of all orders in NMS securities
- Amendments modify method by which allowable costs associated with building and operating the CAT are allocated
- Participants will submit filings pursuant to Section 19(b) of the Securities and Exchange Act of 1934 to impose fees on industry members
- Order approving the amendment will be published Federal Register
- Amendment became effective upon the Commission’s approval
The Securities and Exchange Commission today approved an amendment to the National Market System Plan governing the Consolidated Audit Trail (CAT) (the “CAT NMS Plan”) to adopt a revised funding model, called the “Executed Share Model,” for the CAT and establish a fee schedule for CAT fees for the self-regulatory organizations that are participants to the CAT NMS Plan in accordance with the Executed Share Model. “Prior to CAT’s creation, regulators lacked a consolidated view of the material information of all orders in NMS securities to trace orders from originations, modifications, cancellations, routings, and executions,” said SEC Chair Gary Gensler. “Today’s amendments modify the method by which allowable costs associated with building and operating the CAT are allocated. I support the staff recommendation that the self-regulatory organizations’ NMS Plan amendments be approved as I believe they satisfy the requirements under the Exchange Act and the Commission’s Rule 608.” The approved amendment establishes a framework that plan participants will use to recover the costs to create, develop, and maintain the CAT, including the method for allocating CAT costs among participants and the members of a national securities exchange or a member of a national securities association. Once the Executed Share Model has been approved, the participants will submit filings pursuant to Section 19(b) of the Securities and Exchange Act of 1934 to impose fees on the industry members. Details of the fees, including the budgeted prospective CAT costs and certain of the costs previously covered entirely by the participants prior to the approval of a funding model, will be provided in those Section 19(b) filings submitted by the participants. The order approving the amendment will be published in the Federal Register. The amendment became effective upon the Commission’s approval.
The Securities and Exchange Commission today approved an amendment to the National Market System Plan governing the Consolidated Audit Trail (CAT) (the “CAT NMS Plan”) to adopt a revised funding model, called the “Executed Share Model,” for the CAT and establish a fee schedule for CAT fees for the self-regulatory organizations that are participants to the CAT NMS Plan in accordance with the Executed Share Model. “Prior to CAT’s creation, regulators lacked a consolidated view of the material information of all orders in NMS securities to trace orders from originations, modifications, cancellations, routings, and executions,” said SEC Chair Gary Gensler. “Today’s amendments modify the method by which allowable costs associated with building and operating the CAT are allocated. I support the staff recommendation that the self-regulatory organizations’ NMS Plan amendments be approved as I believe they satisfy the requirements under the Exchange Act and the Commission’s Rule 608.” The approved amendment establishes a framework that plan participants will use to recover the costs to create, develop, and maintain the CAT, including the method for allocating CAT costs among participants and the members of a national securities exchange or a member of a national securities association. Once the Executed Share Model has been approved, the participants will submit filings pursuant to Section 19(b) of the Securities and Exchange Act of 1934 to impose fees on the industry members. Details of the fees, including the budgeted prospective CAT costs and certain of the costs previously covered entirely by the participants prior to the approval of a funding model, will be provided in those Section 19(b) filings submitted by the participants. The order approving the amendment will be published in the Federal Register. The amendment became effective upon the Commission’s approval.