The U.S. Securities & Exchange Commission issued an order granting conditional exemptive relief from certain requirements in the National Market System Plan governing the Consolidated Audit Trail (CAT), Rule 613 of Regulation NMS, and Exchange Act Rule 17a-1, to enable CAT plan participants to reduce operating costs while maintaining core regulatory functionality. The action comes against the backdrop of the U.S. Court of Appeals for the Eleventh Circuit vacating the 2023 funding model order for CAT. The relief permits several cost-saving changes, including ceasing the creation of interim lifecycle linkages unless requested by regulators, easing requirements for re-processing late records, discontinuing certain functionality associated with the online targeted query tool, and deleting certain CAT data while storing older CAT data more cost effectively. The CAT Operating Committee’s originally approved 2025 budget exceeded USD 248 million, and the SEC said that, after prior cost amendments and the new relief, CAT expenses are forecast to fall an additional USD 20 million to USD 27 million below the approximately USD 196 million forecast expenses for 2025. The SEC’s Division of Trading and Markets indicated it will continue engaging CAT participants and industry members on further reforms aimed at reducing costs.
U.S. Securities & Exchange Commission 2025-09-30
U.S. Securities & Exchange Commission grants conditional exemptive relief to reduce Consolidated Audit Trail operating costs
The U.S. Securities & Exchange Commission granted conditional exemptive relief from certain requirements in the National Market System Plan for the Consolidated Audit Trail (CAT) to reduce operating costs while maintaining regulatory functionality. This follows the U.S. Court of Appeals for the Eleventh Circuit vacating the 2023 funding model order for CAT. The SEC forecasts CAT expenses to decrease by an additional USD 20 million to USD 27 million below the USD 196 million forecast for 2025.