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SEC Approves CAT NMS Plan Amendment to Save Money

"SIFMA advocated for this action, and we will continue ... to advocate for the implementation of the long-pending data protection rule and wholesale review of the collection of personally identifiable information, or PII, which puts investors' data at serious risk of a data breach without the data protection rule in place."
Ellen Greene, SIFMA Managing Director for Equity and Options Market Structure
"SIFMA advocated for this action, and we will continue ... to advocate for the implementation of the long-pending data protection rule and wholesale review of the collection of personally identifiable information, or PII, which puts investors' data at serious risk of a data breach without the data protection rule in place."
Ellen Greene, SIFMA Managing Director for Equity and Options Market Structure

The SEC approved amendments to the National Market System Plan governing the Consolidated Audit Trail designed to implement cost savings measures.

The amendments modify requirements related to linking market maker quotes for equity options and also make changes to storage and retention requirements. Among other changes, the amendments the amendments would: (i) "change processing, query, and storage requirements for options market maker quotes in listed options;" (ii) permit a plan processor to move unprocessed data, and other dated data to a more cost-effective storage tier; and (iii) codify and expand exemptive relief related to certain recordkeeping and data retention requirements for industry testing data.

SEC Chair Gary Gensler stated: "I am pleased to support this amendment estimated to save $21 million annually while maintaining the core functionality of CAT."

On behalf of SIFMA, Managing Director for Equity and Options Market Structure, Ellen Greene said that while SIFMA advocated for the current action, "we will continue our advocacy opposing the CAT funding scheme." She also reiterated the need for a data protection rule, warning that without it, the collection of personally identifiable information "puts investors' data at serious risk of a data breach.

 

Primary Sources

  1. Joint Industry Plan; Order Approving Amendments to the NMS Plan Governing the CAT Designed to Implement Cost Savings Measures
  2. SEC Chair Gensler Statements on CAT Savings
  3. SIFMA: News: SIFMA Statement on Amendment to the CAT NMS Plan

Tags

Regulated Activities
Privacy Regulatory Fees Trade Reporting
Sub-Activity
CAT
Regulated Entities
Broker-Dealers Regulatory Agencies
Body of Law
Securities Law
Jurisdiction
US - Federal
Organization
Trade / Industry Associations
Sub-Author
SIFMA