Exchanges to Hold CAT Call
September 14, 2012
The national securities exchanges and the Financial Industry Regulatory Authority have invited industry participants to join in a conference call to discuss SEC Rule 613 mandating a means of collecting order and transaction information overnight from all exchanges.
Passed by the Securities and Exchange Commission on July 11, 2012, the rule requires that the national securities exchanges and the Financial Industry Regulatory Authority (FINRA) establish a market-wide consolidated audit trail (CAT).
To date Direct Edge, the International Securities Exchange (ISE) and the Chicago Stock Exchange (CHX) have indicated on their websites they will participate on the September 19, 4:15 p.m. EST call.
Some industry organizations such as the Financial Industry Forum have also stated their willingness to provide input into Rule 613 implementation.
Other possible and seemingly probable participants including NASDAQ and BATS Exchange did not yet respond to calls from Securities Technology Monitor regarding their participation.
The rule will become effective 60 days after publication in the Federal Register. The Register published the rule on August 1, 2012. From that date, the exchanges and FINRA, known as SROs or self-regulatory organizations, have 270 days to submit their plan for the consolidated audit trail system to the SEC. The plan will not be implemented unless and until approved by the SEC.
One market participant, who asked not to be identified by name or company, said he expected most of the participants to be chief operating officers since they typically have the most comprehensive view of what’s required to implement a consolidated audit trail.
During this call, the SROs will provide an overview of Rule 613, the steps the SROs are taking to develop a National Market System CAT Plan as required in Rule 613, and how the SROs plan to solicit industry comments and feedback on key implementation issues.
In addition, the SROs will announce future industry events at which interested industry participants are invited to share feedback on implementation issues.