SROs Propose Amending NMS CAT Plan to Limit Conflicts in Selection of Plan Processor

The national securities exchanges and associations (together, the "SROs") filed a proposal with the SEC to amend the plan that governs the selection of a plan processor for the Consolidated Audit Trail (the "CAT Plan Processor"). The proposal would require an SRO that (1) submitted a bid; (2) was an affiliate of an entity that submitted a bid; or (3) was included (or was an affiliate of an included entity as a material subcontractor) that submitted a bid (a "Bidding Participant"), to be recused from voting to select the CAT Plan Processor. According to the SROs, the proposal (if approved) would allow the SROs to choose a CAT Plan Processor without any potential conflict of interest that otherwise might arise if an SRO were allowed to vote in the selection process where that SRO was a bidding participant.

See: 80 FR 36006.