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Rule 613 (Consolidated Audit Trail)

Oct. 12, 2017

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:

  • Require each national securities exchange and FINRA, as well as their respective members, to provide certain detailed information to a newly created central repository regarding each quote and order in an NMS security, and each reportable event with respect to each quote and order, such as origination, modification, cancellation, routing, and execution.
  • Require certain data to be reported to the central repository by 8 a.m. Eastern Time the following trading day, and be subsequently available to regulators for their analysis.
  • Require all reportable events to be reported to the central repository in a way that allows the central repository to efficiently and accurately link them to an order through its entire life cycle from generation through routing, modification, cancellation, or execution.
  • Require each broker-dealer and national securities exchange to be assigned a code that uniquely and consistently identifies such broker-dealer or national securities exchange that will be reported to the central repository along with every reportable event.
  • Require each account holder, as well as any person who has trading discretion over an account holder’s account, to be assigned a code that uniquely and consistently identifies such account holder or person with trading discretion over the account, that will be reported to the central repository for every order originated.
  • Require SROs and their members to synchronize the business clocks they use to record the date and time of any reportable event, and require timestamps for each reportable event to the central repository to be in millisecond or finer increments.

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.

The SROs have made available a wide range of information about the current status of the system including FAQs, technical specifications for reporting and related activities and phase/reporting time lines at www.catnmsplan.com.

Recent Public Statements and Press Releases

Statement on the Consolidated Audit Trail: Focus on Effective Implementation Puts CAT on Track, Chairman Jay Clayton, December 16, 2020

Staff Paper on Cross-Market Regulatory Coordination, December 15, 2020

Press Release, SEC Proposes Data Security Enhancements to the CAT NMS Plan, August 21, 2020

Update on the Consolidated Audit Trail: Data Security and Implementation Progress; Chairman Jay Clayton, Brett Redfearn, Director, Division of Trading and Markets, and Manisha Kimmel, Senior Policy Advisor, Regulatory Reporting, August 21, 2020

Statement on Proposed Amendments to the National Market System Plan Governing the Consolidated Audit Trail to Enhance Data Security, Commissioner Hester M. Peirce, August 21, 2020

Press Release, SEC Adopts Amendments to the CAT NMS Plan to Improve Transparency and Financial Accountability, May 15, 2020

Press Release, SEC Provides for Phased CAT Broker-Dealer Reporting Timelines with Conditional Exemption for Impacts of COVID-19, April 20, 2020

Update on Consolidated Audit Trail; Temporary COVID-19 Staff No-Action Letter; Reducing Cybersecurity Risks, Chairman Jay Clayton, March 17, 2020

Statement on Status of the Consolidated Audit Trail, Chairman Jay Clayton, September 9, 2019

Press Release, SEC Proposes Transparency and Financial Accountability Amendments to the CAT NMS Plan, September 9, 2019

Statement on Status of the Consolidated Audit Trail, Brett Redfearn, Director, SEC Division of Trading and Markets, August 27, 2018

Statement on Status of the Consolidated Audit Trail, Chairman Jay Clayton, November 14, 2017

Timeline

On May 26, 2010, the Commission proposed Rule 613 requiring the creation of a consolidated audit trail.

On July 18, 2012, the Commission adopted Rule 613 requiring the creation of a consolidated audit trail.

On September 30, 2014, the SROs submitted to the Commission a proposed NMS plan ("Initial Plan") and cover letter in accordance with Rule 613.

On February 27, 2015, the SROs submitted to the Commission a proposed NMS plan (and cover letter) that amends and replaces the Initial Plan in its entirety ("CAT NMS Plan").

On April 27, 2016, the Commission voted to publish the proposed CAT NMS Plan submitted by the SROs.

On November 15, 2016, the Commission voted to approve the proposed CAT NMS Plan.

On January 17, 2017, the SROs’ Selection Committee of the CAT NMS Plan selected Thesys Technologies, LLC as the Plan Processor for the CAT NMS Plan (see Notice of Plan Processor Selection).

On February 26, 2019, the Operating Committee of CATLLC voted to select FINRA as the successor Plan Processor for the CAT NMS Plan (see Notice of Plan Processor Selection).

Releases

  • Joint Industry Plan; Order Instituting Proceedings to Determine Whether to Approve or Disapprove an Amendment to the National Market System Plan Governing the Consolidated Audit Trail (“CAT”) Relating to the Proposed Revised Funding Model for the CAT and the Proposed Fee Schedule for Participant CAT Fees (Release No. 34-92451; July 20, 2021)
  • Joint Industry Plan; Notice of Filing of Amendment to the National Market System Plan Governing the Consolidated Audit Trail (“CAT”) to Revise the Funding Model for the CAT and to Establish a Fee Schedule for Participant CAT Fees (Release No. 34-91555; Apr. 14, 2021)
  • Joint Industry Plan; Order Instituting Proceedings to Determine Whether to Approve or Disapprove an Amendment to the National Market System Plan Governing the Consolidated Audit Trail Relating to the Proposed Insertion of Limitation of Liability Provisions (Release No. 34-91487; Apr. 6, 2021)
  • Joint Industry Plan; Notice of Filing of Amendment to the National Market System Plan Governing the Consolidated Audit Trail to Propose the Insertion of Limitation of Liability Provisions (Release No. 34-90826; Dec. 30, 2020)
  • Order Granting Temporary Exemptive Relief, Pursuant to Section 36 of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 608(e) of Regulation NMS under the Exchange Act, from Section 8.1.1 and Section 8.1.2 of Appendix D of the National Market System Plan Governing the Consolidated Audit Trail Relating to the Online Targeted Query Tool (Release No. 34-90689; December 16, 2020)
  • Order Granting Temporary Conditional Exemptive Relief Pursuant to Section 36 of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 608(e) of Regulation NMS Under the Exchange Act, Relating to Certain Requirements of the National Market System Plan Governing the Consolidated Audit Trail Relating to Certain Requirements of the CAT NMS Plan (Release No. 34-90688; December 16, 2020)
  • Order Granting a Temporary Conditional Exemption Pursuant to Section 36 of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 608(e) of Regulation NMS Under the Exchange Act, Relating to the Reporting of Certain Activities on the Floor of National Securities Exchanges and Certain Activities by Industry Members Off Exchange Floors, as Required by Section 6.4(d) of the National Market System Plan Governing the Consolidated Audit Trail (Release No. 34-90405; November 12, 2020)
  • Order Granting Conditional Exemptive Relief, Pursuant to Section 36 of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 608(e) of Regulation NMS Under the Exchange Act, Relating to the Reporting of Allocations Pursuant to the National Market System Plan Governing the Consolidated Audit Trail (Release No. 34-90223; October 19, 2020)
  • Proposed Amendments to the National Market System Plan Governing the Consolidated Audit Trail to Enhance Data Security (Release No. 34-89632; August 21, 2020)
  • Joint Industry Plan; Order Approving Amendment to the National Market System Plan Governing the Consolidated Audit Trail to Revise Data Reporting Requirements for Firm Designated ID (Release No. 34-89397; July 24, 2020)
  • Joint Industry Plan; Notice of Filing and Immediate Effectiveness of Amendment to the National Market System Plan Governing the Consolidated Audit Trail to Add MEMX LLC as a Participant (Release No. 34-89306; July 13, 2020)
  • Joint Industry Plan; Notice of Filing of Amendment to the National Market System Plan Governing the Consolidated Audit Trail to Revise Data Reporting Requirements for Firm Designated ID (Release No. 34-89052; June 11, 2020)
  • Order Granting Conditional Exemptive Relief, Pursuant to Section 36 of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 608(e) of Regulation NMS under the Exchange Act, from Sections 6.4(d)(ii)(A)(2) and (B) of the National Market System Plan Governing the Consolidated Audit Trail Relating to FINRA’s Trade Reporting Facilities (Release No. 34-89051; June 11, 2020)
  • Amendments to the National Market System Plan Governing the Consolidated Audit Trail on Transparency and Financial Accountability (Release No. 34-88890; May 15, 2020)
  • Order Granting Limited Exemptive Relief, Pursuant to Section 36 of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 608(e) of Regulation NMS Under the Exchange Act, Related to Certain Introducing Brokers, From the Requirements of the National Market System Plan Governing the Consolidated Audit Trail (Release No. 34-88703; Apr. 20, 2020)
  • Order Granting Conditional Exemptive Relief, Pursuant to Section 36 of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 608(e) of Regulation NMS Under the Exchange Act, from Sections 6.4, 6.7(a)(v) and 6.7(a)(vi) of the National Market System Plan Governing the Consolidated Audit Trail (Release No. 34-88702; Apr. 20, 2020)
  • Order Granting Conditional Exemptive Relief, Pursuant to Section 36 of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 608(e) of Regulation NMS Under the Exchange Act to Rule 608(e) of Regulation NMS Under the Exchange Act, Relating to Granularity of Timestamps Specified in Section 6.8(b) and Appendix D, Section 3 of the National Market System Plan Governing the Consolidated Audit Trail (Release No. 34-88608; Apr. 8, 2020)
  • Order Granting Conditional Exemptive Relief, Pursuant to Section 36 and Rule 608(e) of the Securities Exchange Act of 1934, from Section 6.4(d)(ii)(C) and Appendix D Sections 4.1.6, 6.2, 8.1.1, 8.2, 9.1, 9.2, 9.4, 10.1, and 10.3 of the National Market System Plan Governing the Consolidated Audit Trail (Release No. 34-88393; Mar. 17, 2020)
  • Joint Industry Plan; Notice of Filing and Immediate Effectiveness of Amendment to the Plan Governing the Consolidated Audit Trail to Add Long-Term Stock Exchange LLC as a Participant (Release No. 34-87595; November 22, 2019)
  • Joint Industry Plan; Notice of Filing and Immediate Effectiveness of Amendment to the National Market System Plan Governing the Consolidated Audit Trail to accommodate the creation of a new Delaware limited liability company, named Consolidated Audit Trail, LLC (Release No. 34-87149; September 27, 2019)
  • Proposed Amendments to the National Market System Plan Governing the Consolidated Audit Trail on Transparency and Financial Accountability (Release No. 34-86901; September 9, 2019)
  • Joint Industry Plan; Notice of Filing and Immediate Effectiveness of Amendment to the Plan Governing the Consolidated Audit Trail to Add MIAX Emerald LLC, as a Participant (Release No. 34-85230; March 28, 2019)
  • Joint Industry Plan; Notice of Withdrawal of Amendment No. 4 to the National Market System Plan Governing the Consolidated Audit Trail (Release No. 34-82892; March 16, 2018)
  • Joint Industry Plan; Notice of Filing and Immediate Effectiveness of Amendment No. 4 to the National Market System Plan Governing the Consolidated Audit Trail adding a fee schedule (Release No. 34-82451; January 5, 2018)
  • Order of Summary Abrogation of Amendment No. 2 to the National Market System Plan Governing the Consolidated Audit Trail (Release No. 34-81189; July 21, 2017)
  • Notice of Filing and Immediate Effectiveness of Amendment No. 2 to the National Market System Plan Governing the Consolidated Audit Trail adding a fee schedule (Release No. 34-80930; June 14, 2017)
  • Order Granting Limited Exemptive Relief, Pursuant to Rule 608(e) of the Securities Exchange Act of 1934, from the Clock Synchronization Compliance Deadline Specified in Section 6.7(a)(ii) of the National Market System Plan Governing the Consolidated Audit Trail (Release No. 34-80142; March 2, 2017).
  • Joint Industry Plan; Notice of Filing and Immediate Effectiveness of Amendment to the Plan Governing the Consolidated Audit Trail to Add MIAX PEARL, LLC as a Participant (Release No. 34-79898; File No. 4-698; January 30, 2017).
  • Joint Industry Plan; Order Approving the National Market System Plan Governing the Consolidated Audit Trail (Release No. 34-79318; File No. 4-698; November 15, 2016; see also Exhibit A, Exhibit B).
  • Joint Industry Plan; Notice of Filing and Immediate Effectiveness of Amendment No. 4 to the National Market System Plan Governing the Process of Selecting a Plan Processor and Developing a Plan for the Consolidated Audit Trail (Release No. 34-78477; File No. 4-668; August 4, 2016; see also Exhibit B).
  • Joint Industry Plan; Notice of Designation of Longer Period for Commission Action on the Proposed National Market System Plan Governing the Consolidated Audit Trail (Release No. 34-78441; File No. 4-698; July 29, 2016).
  • Joint Industry Plan; Notice of Filing and Immediate Effectiveness of Amendment No. 3 to the National Market System Plan Governing the Process of Selecting a Plan Processor and Developing a Plan for the Consolidated Audit Trail (Release No. 34-77917; File No. 4-668; May 25, 2016).
  • Joint Industry Plan; Notice of Filing of the National Market System Plan Governing the Consolidated Audit Trail by BATS Exchange, Inc., BATS-Y Exchange, Inc., BOX Options Exchange LLC, C2 Options Exchange, Incorporated, Chicago Board Options Exchange, Incorporated, Chicago Stock Exchange, Inc., EDGA Exchange, Inc., EDGX Exchange, Inc., Financial Industry Regulatory Authority, Inc., International Securities Exchange, LLC, ISE Gemini, LLC, Miami International Securities Exchange LLC, NASDAQ OMX BX, Inc., NASDAQ OMX PHLX LLC, The NASDAQ Stock Market LLC, National Stock Exchange, Inc., New York Stock Exchange LLC, NYSE MKT LLC, and NYSE Arca, Inc. (Release No. 34-77724; File No. 4-698; April 27, 2016).
  • Order Granting Exemptions from Certain Provisions of Rule 613 Pursuant to Section 36(a)(1) of the Securities Exchange Act of 1934 (Release No. 34-77265; March 1, 2016). See also: Incoming Letter.
  • Joint Industry Plan; Order Approving Amendment No. 2 to the to the National Market System Plan Governing the Process of Selecting a Plan Processor and Developing a Plan for the Consolidated Audit Trail (Release No. 34-75980; File No. 4-668; September 24, 2015). See also Notice: Release No. 34-75193.
  • Joint Industry Plan; Notice of Filing of Amendment No. 2 to the National Market System Plan Governing the Process of Selecting a Plan Processor and Developing a Plan for the Consolidated Audit Trail (Release No. 34-75193; File No. 4-668; June 17, 2015).
  • Joint Industry Plan; Order Approving Amendment No. 1 to the National Market System Plan Governing the Process of Selecting a Plan Processor and Developing a Plan for the Consolidated Audit Trail (Release No. 34-75192; File No. 4-668; June 17, 2015). See also Notice: Release No.34-74223.
  • Joint Industry Plan; Notice of Amendment to the National Market System Plan Governing the Process of Selecting a Plan Processor and Developing a Plan for the Consolidated Audit Trail (Release No. 34-74223; File No. 4-688; February 6, 2015).
  • Joint Industry Plan; Order Approving Proposed National Market System Plan Governing the Process of Selecting a Plan Processor and Developing a Plan for the Consolidated Audit Trail (Release No. 34-71596; File No. 4-668; February 21, 2014).
  • 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. 34-71018; December 6, 2013). See also: Incoming Letter.
  • Joint Industry Plan; Notice of Filing of Proposed National Market System Plan Governing the Process of Selecting a Plan Processor and Developing a Plan for the Consolidated Audit Trail (Release No. 34-70892; File No. 4-668; November 15, 2013).
  • 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).
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