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

SEC Delays CAT Reporting Due to COVID-19 Concerns

Subscribe to our newsletter

The US Securities and Exchange Commission (SEC) has confirmed a delayed start for Consolidated Audit Trail (CAT) reporting, upon condition of compliance with certain other obligations, including milestones related to testing and releases of CAT functionality, as well as all other compliance dates for broker-dealer reporting to the CAT.

Although the original reporting deadline for Large Industry Members was due on 20th April, in March the Financial Industry Regulatory Authority (FINRA) issued a no-action letter to the SEC that essentially delayed the deadline until mid-May. The latest announcement from the SEC further extends that leeway until 22nd June, when initial equities reporting for large broker-dealers and small firms who currently report to the FINRA Order Audit Trail System (OATS) will come into force.

“In order to address the impact of COVID-19 while preserving progress toward existing milestones, the first exemptive order also allows for a delayed start to CAT reporting conditioned upon compliance with certain other obligations,” says an SEC spokesperson. “These obligations include milestones related to testing and releases of CAT functionality, as well as all other compliance dates for broker-dealer reporting to the CAT.”

Other CAT deadlines include 20th July 2020 for initial options reporting for large broker-dealers, 13th December 2021 for full equities and options reporting for all firms, and 11th July 2022 for full customer and account reporting.

UK-based data integration specialist Inforalgo, which offers a cloud-based service for CAT compliance, warns that while the news might come as a welcome relief as businesses work to stabilise under new working conditions, firms should not rest on their laurels, but use the time to address key COVID-19 considerations: including whether CAT reporting can be supported with employees working from home, whether current infrastructure can handle the diverse changes to the trading environments, and whether an outsourced or managed service solution might be beneficial in order to meet compliance requirements.

“We strongly advise firms to use this time to get ahead of the game and get their reporting solutions in order,” says the provider.

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

Banks’ PRIIPS Headache Set to Intensify as Capital Markets Union Regulation Ramps Up

By Kifaya Belkaaloul, head of regulatory at NeoXam. Over the past decade, the European Union has rolled out a host of new regulations aimed at fostering more competitive capital markets and mobilising private investment towards critical goals including the digital transition and climate emergency. One of the EU’s core levers for enacting change has been...

EVENT

AI in Capital Markets Summit London

The AI in Capital Markets Summit will explore current and emerging trends in AI, the potential of Generative AI and LLMs and how AI can be applied for efficiencies and business value across a number of use cases, in the front and back office of financial institutions. The agenda will explore the risks and challenges of adopting AI and the foundational technologies and data management capabilities that underpin successful deployment.

GUIDE

Regulatory Data Handbook 2023 – Eleventh Edition

Welcome to the eleventh edition of A-Team Group’s Regulatory Data Handbook, a popular publication that covers new regulations in capital markets, tracks regulatory change, and provides advice on the data, data management and implementation requirements of more than 30 regulations across UK, European, US and Asia-Pacific capital markets. This edition of the handbook includes new...