The U.S. Securities & Exchange Commission approved an order granting conditional exemptive relief that allows the immediate implementation of changes to the Consolidated Audit Trail (CAT), with the stated aim of saving tens of millions of dollars in annual operating costs. The release highlights a sharp rise in CAT operating costs since its establishment in 2016, when annual costs were estimated at about USD 55 million. By November 2024, projected annual costs were expected to exceed USD 248 million, with a later revised estimate of USD 228,334,551 for 2025, and the Chairman linked these costs to higher expenses for participation in U.S. equities and options markets. The statement also points to the U.S. Court of Appeals for the Eleventh Circuit decision vacating the 2023 CAT Funding Model Order as reinforcing the need to improve CAT efficiency. A comprehensive SEC staff review of the CAT is underway, including reassessing the scope of data collected and whether duplicative reporting systems should be retired or modified. Market participants and the public are encouraged to provide feedback, and further changes are anticipated following staff recommendations.
U.S. Securities & Exchange Commission 2025-09-30
U.S. Securities & Exchange Commission approves conditional exemptive relief to immediately implement cost-saving changes to the Consolidated Audit Trail
The U.S. Securities & Exchange Commission approved conditional exemptive relief for changes to the Consolidated Audit Trail (CAT) to reduce annual operating costs, which have surged from USD 55 million in 2016 to a projected USD 228 million in 2025. The SEC is reviewing the CAT, including data scope and reporting systems, with further changes expected based on staff recommendations. The U.S. Court of Appeals for the Eleventh Circuit's decision to vacate the 2023 CAT Funding Model Order underscores the need for improved CAT efficiency.