About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

CAT Builder Choice Marks End Of Years-Long Process

Subscribe to our newsletter

Spurred by the US Securities and Exchange Commission (SEC) approval of a national market system (NMS) plan in November, which includes creation of a consolidated audit trail (CAT), US securities exchanges chose Thesys Technologies, a New York-based trading technology provider with a focus on trading surveillance and big data functions already aimed at CAT functions.

Thesys’ proposal prevailed over FIS (Fidelity National Information Services) and the US self-regulatory organization (SRO), the Financial Industry Regulatory Authority (FINRA) in a vote by US exchanges choosing a builder for CAT.

The process of choosing a company to build CAT has been years in the making. The proposals were completed, including amendments, in March 2014, after a request for proposals was first published in February 2013. In July 2012, the SEC approved Rule 613 of Regulation NMS, which required exchanges’ SROs to submit a plan for building the CAT. It took until April 2016, however, for the SEC to publish the SROs CAT plan, which appears to have affected how the bidders proposals to build the CAT could be evaluated.

The choice of Thesys Technologies surprised some, and FINRA, as an SRO itself, had been expected to win the contract to build the database. FINRA issued this statement on the decision:

“FINRA appreciates the opportunity to have submitted a highly competitive proposal to become the processor for the Consolidated Audit Trail. Although ultimately we were not selected to be the processor, FINRA will work closely with all parties toward a smooth transition to the CAT. FINRA remains committed to its robust program of cross-market surveillance and looks forward to enhancing that oversight with the uniform, comprehensive data that the CAT will provide.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: The Role of Data Fabric and Data Mesh in Modern Trading Infrastructures

The demands on trading infrastructure are intensifying. Increasing data volumes, the necessity for real-time processing, and stringent regulatory requirements are exposing the limitations of legacy data architectures. In response, firms are re-evaluating their data strategies to improve agility, scalability, and governance. Two architectural models central to this conversation are Data Fabric and Data Mesh. This...

BLOG

Thoma Bravo to Acquire Verint, Forging AI-Powered Customer Experience Giant with Calabrio

Private equity firm Thoma Bravo has announced a definitive agreement to acquire Verint in an all-cash transaction valued at approximately $2 billion. Following the acquisition, Verint will be combined with Calabrio, another Thoma Bravo portfolio company, to create a formidable force in the AI-driven customer experience market. The transaction, which has been unanimously approved by...

EVENT

AI in Capital Markets Summit London

Now in its 3rd year, the AI in Capital Markets Summit returns with a focus on the practicalities of onboarding AI enterprise wide for business value creation. Whilst AI offers huge potential to revolutionise capital markets operations many are struggling to move beyond pilot phase to generate substantial value from AI.

GUIDE

Risk & Compliance

The current financial climate has meant that risk management and compliance requirements are never far from the minds of the boards of financial institutions. In order to meet the slew of regulations on the horizon, firms are being compelled to invest in their systems in order to cope with the new requirements. Data management is...