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: Best Practices for Managing Trade Surveillance

The surge in trading volumes combined with the emergence of new digital financial assets and geopolitical events have added layers of complexity to market activities. Traditional surveillance methods often struggle to keep pace with these changes, leading to difficulties in detecting sophisticated market abuses and increased regulatory risk. To address these challenges, financial institutions are...

BLOG

Symphony and the Future of Market Communications: T+1, DORA, and Deepfake Defence

In May 2024, the U.S. capital markets made the long-awaited transition to T+1 settlement, with RegTech company Symphony playing a quiet but pivotal role. The integration of its platform with DTCC’s Central Trade Manager (CTM) gave firms the ability to resolve trade contract breaks in real time, reducing the risk of settlement failure. “The DTCC,...

EVENT

RegTech Summit London

Now in its 9th year, the RegTech Summit in London will bring together the RegTech ecosystem to explore how the European capital markets financial industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

Entity Data Management & the LEI

Just over a year since the Financial Stability Board handed over leadership and direction of the interim Global Legal Entity Identifier System – or GLEIS – to the Regulatory Oversight Committee (ROC) of the LEI the entity identifier is being used for reporting under European Market Infrastructure Regulation. This report discusses recent developments in the...