The Securities and Exchange Commission is looking for public comments on its comprehensive review of the consolidated audit trail (CAT) and other audit trails and related data sources used in securities regulation.
The SEC issued a concept release asking for feedback on CAT funding and cost management, the regulatory purpose of the CAT, the structure and governance of the CAT and its design and scope, as well as its cybersecurity and data privacy. The SEC also is seeking feedback on other audit trails and related data, as well as comments on the appropriate balance between privacy and confidentiality considerations, civil liberties protections and regulatory need.
“Under my leadership, the Commission has made meaningful progress to reform the CAT and strike a better balance between regulatory use, costs, funding, and security considerations,” SEC Chairman Paul S. Atkins said. “Over the last year, the Commission has issued exemptive relief and approved amendments to the national market system plan governing the CAT that have, among other benefits, reduced the CAT’s projected annual operating costs by over $100 million and permanently eliminated the reporting of personal identifiable information to the CAT.”
SEC concept releases allow the Commission to obtain public input on policy topics in advance of pursuing any related regulatory action. Concept releases typically outline a topic, identify potential options, and then raise specific questions for public commenters to consider.
In this concept release, the Commission welcomes comment on possible regulatory responses related to topics identified in the release or otherwise proposed by commenters with respect to the CAT, including comments on any costs, burdens, or benefits that may result from such regulatory responses.
The public comment period will remain open for 60 days following publication of the concept release in the Federal Register.
“The Division is looking forward to engaging with the public with respect to our comprehensive review of the CAT,” Jamie Selway, director of the SEC’s Division of Trading and Markets, said. “We anticipate that the concept release issued by the Commission today will provoke meaningful dialogue.”