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 NMS Transitions Project to New Plan Processor, Pushes Back Reporting

Subscribe to our newsletter

Broker-dealers within the scope of the US Consolidated Audit Trail (CAT) can expect another postponement in reporting following confirmation from the CAT National Market System (NMS) that it is ‘transitioning the CAT project to a new plan processer’. This suggests Thesys Technologies, which was rather surprisingly selected as the plan processor by the self-regulatory organisations (SROs) that operate the CAT NMS in May 2017, has been dropped from the initiative, most likely due to missed deadlines in building the CAT and preparing for reporting.

The Financial Industry Regulatory Authority (FINRA), which missed out on the contract first time around and operates the CAT predecessor, the Order Audit Trail System (OATS), is likely to be interested in taking over the plan processor role, although large data vendors such as Bloomberg and Refinitiv cannot be ruled out.

In a statement on February 1st, 2019, the CAT NMS notes: “In transitioning the project to a new plan processor, the participants are evaluating the impact the transition will have on current industry member implementation plans. While certain dates may change, there are no material changes planned for the industry member technical specifications. The participants will continue to work with industry participants to finalize the industry member reporting specification.”

The CAT (aka SEC Rule 613) has had a chequered history since the Securities and Exchange Committee (SEC) approved the CAT NMS plan in November 2016. Troubles have included complaints about the burden the CAT puts on broker dealers, its funding model, and the proposed collection of client data that creates risk in the event of a breach.

There have also been numerous implementation delays, despite early SEC efforts to hold to the original time plan that required, but did not realise, first reporting in November 2017. The latest proposals on timing were presented by the SROs to the SEC in May 2018. They called for first phase reporting by SROs to start on November 15, 2018, second phase reporting for large broker-dealers to start on November 15, 2019, and all phases of small broker-dealer reporting to be complete by November 15, 2022. While a flurry of attempts to report to the CAT was made in late 2018, reporting appears to have stalled.

According to the CAT NMS statement: “As an initial matter, the participants anticipate the initial test period for data ingestion will move from August 2019 to late 2019 and plan to announce a more fulsome implementation schedule shortly.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Best practice approaches to trade surveillance for market abuse

Breaches of market abuse regulation can lead to reputational damage, eye-watering fines and, ultimately, custodial sentences of up to 10 years. Internally, market abuse triggers scrutiny of traders and trading behaviours; externally it can undermine confidence in markets and cause financial instability. This webinar will discuss market abuse of different types, such as insider trading...

BLOG

The Top 12 Transaction Cost Analysis (TCA) Solutions in 2024

Transaction Cost Analysis (TCA) has evolved significantly in recent years. In its early days, with limited tools and methods available for detailed cost analysis, the focus of TCA was on simple measures of trading costs, such as commissions and fees, with basic benchmarks like VWAP (Volume Weighted Average Price) and TWAP (Time Weighted Average Price)...

EVENT

Data Management Summit New York City

Now in its 14th year the Data Management Summit NYC brings together the North American data management community to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

Entity Data Management Handbook

Following on from the success of our Regulatory Data Handbook, A-Team Group is pleased to introduce its new Entity Data Management Handbook which is available for free download. This Handbook is the ultimate guide to all things entity data: Why Entity Data is important A full review of Legal Entity Identifiers (LEIs) Where they came...