FINRA Executive Vice President and Chief Information Officer Discusses Technology Developments in Securities Oversight (with Lofchie Comment)

FINRA Executive Vice President and Chief Information Officer Steven J. Randich delivered a presentation at the SIFMA Tech 2014 Conference regarding FINRA technology updates and developments in securities regulation.

Mr. Randich explained that FINRA's technology is "vital" to protecting investors and is also important because of its ability to oversee and monitor firms, detect fraud and keep investors informed. Mr. Randich noted that FINRA's CARDS technology is an important development that will allow FINRA to conduct ongoing "birds-eye-view surveillance," which Mr. Randich said will complement its "boots-on-the-ground" exams. He explained that, currently, FINRA is soliciting comments regarding the program and is pursuing the use of a standard data submission format and process for all firms.

Mr. Randich also stated that FINRA's Consolidated Audit Trail ("CAT") will serve as the central place for the SEC and all SROs to observe market activity, linked accounts and broader products/asset classes for both equities and options.

Lofchie Comment: While FINRA believes that CARDS is an important development, on the market side, SIFMA is adamantly opposed to it. In a speech by Randy Snook of SIFMA that was highlighted in today's "other news", Mr. Snook described CARDS as "a massive and invasive regulatory intrusion with serious privacy and security implications for the general public with added technology costs and operational burdens for the financial industry."

See: Steven Randich's Presentation.