Rule 613 (Consolidated Audit Trail)
The Commission adopted Rule 613 to create a comprehensive consolidated audit trail that would allow regulators to efficiently and accurately track all activity throughout the U.S. markets in National Market System (NMS) securities. Among other things, the rule requires the self-regulatory organizations (SROs) to jointly submit a plan – called an NMS plan – to create, implement and maintain a consolidated audit trail. The rule specifies the type of data to be collected and when the data is to be reported to a central repository.
In particular, the rule mandates that the NMS plan:
The rule allows the SROs to determine the specifics of how market participants would report data to the central repository. While this might allow for multiple electronic formats, the data must be reported in a way that enables the central repository to send it to regulators in a uniform electronic format.
Under the rule, the SROs are required to submit the NMS plan to the Commission within 270 days of the date of publication of the adopting release in the Federal Register, which was April 29, 2013. On March 7, 2013, the Commission granted the SROs an exemption so that the new deadline by which SROs must submit the NMS plan to the Commission is December 6, 2013.
If and when the Commission approves the NMS plan, the SROs are required to report the required data to the central repository within one year after effectiveness of the NMS plan. Members of the SROs are required to report the required data to the central repository within two years after effectiveness of the NMS plan, with a possible exception that would provide up to an additional year for members of the SROs that qualify as small broker-dealers.
The SROs currently are developing an NMS plan to be submitted to the Commission in accordance with Rule 613. The SROs have made available a wide range of information about their process for developing the NMS plan and the current status of those efforts at www.catnmsplan.com.
Order Granting a Temporary Exemption Pursuant to Section 36(a)(1) of the Securities Exchange Act of 1934 from the Filing Deadline Specified in Rule 613(a)(1) of the Exchange Act (Release No. 34-69060; March 7, 2013). See also Incoming Letter
Consolidated Audit Trail (Adopting Release No. 34-67457; July 18, 2012)
Consolidated Audit Trail (Proposing Release No. 34-62174; May 26, 2010)