Regulations

Story: SEC Wants Your Take on Consolidated Audit Trail Overhaul

By James Thorp

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What the Concept Release Actually Says. The CAT was supposed to give regulators a complete record of trading activity.

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Timeline Remains Murky. The SEC didn't give a completion date for this review.

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What Happens Next. Once the comment period closes—whenever that is—the SEC will sift through everything that came in.

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The Securities and Exchange Commission just opened the floodgates for public comment on its Consolidated Audit Trail. Big move.

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The SEC dropped a concept release today that basically says: we're reviewing the CAT and other data sources, and we need your input.

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The CAT was supposed to give regulators a complete record of trading activity. Every order, every execution, every modification across markets.

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But the SEC didn't stop at just the CAT. The agency's also looking at how other audit trails and data sources fit into the picture.

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Public feedback matters here. A lot. The commission can't fix what it doesn't know is broken, and market participants see problems regulators might miss sitting in Washington.

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The SEC didn't give a completion date for this review. That's pretty typical for concept releases, but it leaves everyone guessing about when—or if—actual regulatory changes…

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Related: SEC and CFTC Want to Cut Red Tape for Private Funds Filing Reports

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And there's no guarantee any changes happen at all. The commission hasn't tipped its hand about specific areas of concern or what modifications it's considering.

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What's clear is the SEC wants diverse perspectives. The concept release specifically invites input from stakeholders across the board.

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The agency's approach here reflects a commitment to transparency. By opening up the review process to public comment, the SEC's basically admitting it doesn't have all the answers.

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The commission's focus on the CAT is part of ongoing efforts to keep market surveillance robust. Financial markets have gotten more complex over the years.

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Read also: SEC Panel Looks at Ways to Get More Companies Going Public

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