FINRA Proposes Elimination of OATS Rules in Transition to CAT

FINRA proposed to eliminate Order Audit Trail System ("OATS") rules once member firms begin reporting to the Consolidated Audit Trail ("CAT"). Under the proposal, FINRA would remove the Rule 7400 Series ("Order Audit Trail System") and Rule 4554 ("Alternative Trading Systems - Recording and Reporting Requirements of Order and Execution Information for NMS Stocks").

The rule change would become effective upon approval from the SEC. The change would be implemented when FINRA determines that thresholds for CAT accuracy and reliability have been met.