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

A-Team Insight Blogs

SEC Delays CAT Reporting Due to COVID-19 Concerns

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.

Related content

WEBINAR

Recorded Webinar: Developing operational resilience

Financial institutions’ operational resilience – essentially the ability to prevent, adapt and respond to, and recover and learn from operational disruptions – has come under extreme pressure during the coronavirus pandemic, with last year’s March lockdown creating unprecedented circumstances for financial firms. Employees working from home raised the stakes, as they still do, adding to...

BLOG

Qomply and Bovill Team Up on Regulatory Audits

Qomply, a RegTech firm specializing in transactions reporting for MiFIR, SFTR and EMIR, has joined forces with global financial services regulatory consultancy Bovill to develop an end-to-end transaction reporting service for financial institutions. Powered by Qomply’s technology, Bovill will streamline its HealthCheck services to provide clients with immediate feedback on the accuracy and completeness of...

EVENT

Data Management Summit London

The Data Management Summit Virtual explores how financial institutions are shifting from defensive to offensive data management strategies, to improve operational efficiency and revenue enhancing opportunities. We’ll be putting the business lens on data and deep diving into the data management capabilities needed to deliver on business outcomes.

GUIDE

Entity Data Management Handbook – Seventh Edition

Sourcing entity data and ensuring efficient and effective entity data management is a challenge for many financial institutions as volumes of data rise, more regulations require entity data in reporting, and the fight again financial crime is escalated by bad actors using increasingly sophisticated techniques to attack processes and systems. That said, based on best...