A-Team Insight Blogs

S3 Offers SEC CAT Solution Ahead of April Reporting Deadline

Share article

As reporting to the SEC Consolidated Audit Trail (CAT) fast approaches, with large industry participants and small industry participants reporting to the Order Audit Trail System (OATS) due to submit files on April 20, 2020, vendors are finalising solutions to support firms subject to the regulation.

Among them is S3, a provider of regulatory reporting technology – including a specialism in SEC rules 605 and 606 covering disclosure of order execution and order routing information, trade surveillance, and post-trade analytics. The company has built on its reporting experience to offer a managed service solution for the CAT and is initially working with a major exchange (that it cannot currently name) to provide a service for its hosted brokers. It is also working with its own broker clients and talking to others about provision of the CAT service, which validates exchange files, submits required data to the CAT, and handles any data problems with individual brokers.

Mark Davies, CEO at S3, says the company’s CAT solution is a natural extension of its reporting capabilities, which already handle a substantial volume of data. The company has been working with the exchange’s brokers and FINRA for a few months to get data flowing and is ready for first submissions in April. Davies adds: “With new regulations coming down the pipeline, firms must be prepared to make adjustments that are often costly. S3’s CAT reporting service intends to mitigate that expense and lift much of the compliance burden off our clients.”

S3 prides itself on offering an integrated solution across SEC 605 and 606, transaction cost analysis (TCA), market surveillance, best execution and now the CAT. While its sales focus is only on the US at the moment, it could move into European markets on the strength of its expertise around SEC 605 and 606, rules that are similar to the RTS 27 and 28 reporting standards under Europe’s Markets in Financial Instruments Directive II (MiFID II).

Coming back to the CAT, Davies notes ongoing industry issues around data privacy, which without an acceptable solution, are likely to escalate ahead of the July 2022 deadline for reporting of customer and account information to the CAT.

Leave a comment

Your email address will not be published. Required fields are marked *

*

Related content

WEBINAR

Upcoming Webinar: Embedding AI & Machine Learning into your trading operations

Date: 15 September 2020 Time: 10:00am ET / 3:00pm London / 4:00pm CET It’s no secret that AI and Machine Learning are changing the landscape of the trading industry. As these tools and techniques become more mainstream, their availability to even the smallest of financial firms is becoming a more viable proposition.  From speech recognition...

BLOG

VendEx Addresses Regulatory Compliance with VReg Module

VendEx Solutions continued on its quest to break the mould in the market data inventory systems space with last month’s launch of VReg, a new module that gives consumers of market data an overview of the data suppliers they use to meet their regulatory obligations. The addition is the latest step in the San Francisco...

EVENT

Data Management Summit USA Virtual

Data Management Summit USA Virtual will explore how sell side and buy side financial institutions are navigating the global crisis and adapting their data strategies to manage in today’s new normal environment.

GUIDE

Valuations – Toward On-Demand Evaluated Pricing

Risk and regulatory imperatives are demanding access to the latest portfolio information, placing new pressures on the pricing and valuation function. And the front office increasingly wants up-to-date valuations of hard-to-price securities. These developments are driving a push toward on-demand evaluated pricing capabilities, with pricing teams seeking to provide access to valuations at higher frequency...