The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

CAT Builder Choice Marks End Of Years-Long Process

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.”

Related content

WEBINAR

Recorded Webinar: Managing LIBOR transition

The clock is ticking on the decommissioning of LIBOR towards the end of this year, leaving financial institutions with little time to identify where LIBOR is embedded in their processes, assess alternative benchmarks and reference rates, and ensure a smooth transition. Some will be ahead of others, but the challenges are significant for all as...

BLOG

BMLL Expands Distribution Ecosystem with Kx Platform

London-based analytics specialist BMLL Technologies’ new partnership with First Derivatives’ Kx will make BMLL’s data and analytics available via the Kx Streaming Analytics platform, which is used by many of the world’s major global financial institutions. The arrangement gives BMLL a significant new distribution channel as it continues its expansion in the wake of last...

EVENT

Data Management Summit USA Virtual

Now in its 11th year, the Data Management Summit USA Virtual explores the shift to the new world where data is redefining the operating model and firms are seeking to unlock value via data transformation projects for enterprise gain and competitive edge.

GUIDE

BCBS 239 Data Management Handbook

Our 2015/2016 edition of the BCBS 239 Data Management Handbook has arrived! Printed copies went like hotcakes at our Data Management Summit in New York but you can download your own copy here and get access to detailed information on the  principles and implications of BCBS 239 on Data Management. This Handbook provides an at-a-glance...