CAT FAQs

A. GENERAL

1. Has a legal entity been established to conduct the activities related to the CAT?
The Participants conduct the activities related to the CAT in a Delaware limited liability company referred to as the CAT NMS, LLC. The Participants jointly own on equal basis the CAT NMS, LLC. The LLC Agreement, along with its appendices, is the CAT NMS Plan.

2. How is the CAT NMS, LLC managed?
The CAT NMS Plan provides that the CAT NMS, LLC will be managed by its Operating Committee. Each Participant appoints one member of the Operating Committee and each Participant appointee has one vote. The CAT NMS Plan sets forth certain provisions relating to the Operating Committee, including identification of those actions requiring a Majority Vote, a Supermajority Vote or a unanimous vote, and the management of conflicts of interest.

3. Does the industry have a role in the management of the CAT?
The CAT NMS Plan requires the establishment of an Advisory Committee charged with advising the Participants on the implementation, operation and administration of the CAT. Under the Plan, the Advisory Committee has the right to attend Operating Committee and Subcommittee meetings (unless they are held in Executive Session) and submit its views prior to a decision by the Operating Committee. The composition of the Advisory Committee includes: (a) broker-dealers of varying sizes and types of business, including a clearing firm; (b) an individual who maintains a securities account; (c) an academic; and (d) institutional investors.

4. Does the CAT NMS, LLC have any officers?
The CAT NMS Plan requires the CAT NMS, LLC to appoint a Chief Information Security Officer (CISO) and Chief Compliance Officer (CCO), each of which is an employee of the Plan Processor, reporting directly to the Operating Committee and with fiduciary duties to the CAT NMS, LLC. The CISO is Vas Rajan, and the CCO is Shane Swanson.

5. When will Participants begin reporting data to the CAT?
The CAT NMS Plan requires that Participants begin reporting Participant Data to the CAT by November 15, 2017. The Operating Committee requested an extension of this reporting deadline to November 15, 2018. Although the SEC has not granted this extension to date, the Participants are working toward reporting Participant Data by November 15, 2018.

6. When will large Industry Members begin reporting data to the CAT?
The CAT NMS Plan requires Industry Members (other than Small Industry Members) to begin reporting Industry Member Data to the CAT by November 15, 2018. The Operating Committee requested an extension of this reporting deadline to April 13, 2020. Although the SEC has not granted this extension to date, the Participants are working toward this April 13, 2020 reporting date.

7. When will Small Industry Members begin reporting data to the CAT?
The CAT NMS Plan requires Small Industry Members to begin reporting Industry Member Data to the CAT by November 15, 2019. The Operating Committee requested an extension of this reporting deadline to April 20, 2021. Although the SEC has not granted this extension to date, the Participants are working toward this April 20, 2021 reporting date.

8. What is the role of the Plan Processor?
The CAT NMS Plan describes the responsibilities of the Plan Processor for the CAT. CAT NMS, LLC has entered into an agreement with Thesys CAT LLC obligating Thesys CAT LLC, as the Plan Processor, to perform the functions and duties contemplated by the Plan, including the management and operation of the CAT.

9. Who is the Plan Processor for the CAT?
Thesys CAT LLC, a subsidiary of Thesys Technologies, LLC, is the Plan Processor for the CAT.

10. How is the cost of the CAT being funded?
Currently, the Participants are funding the CAT-related costs themselves. The CAT NMS Plan, however, contemplates a funding model in which both Participants and Industry Members contribute to the funding of the CAT. Although the Participants have filed fee filings with the SEC to impose CAT Fees on Participants and Industry Members, the Participants have withdrawn these fee filings at this time. The Participants anticipate filing revised fee filings in the near future.

11. How does the CAT funding model set forth in the CAT NMS Plan work?
The CAT NMS Plan contemplates a bifurcated funding model, where costs associated with building and operating the CAT would be borne by (1) Participants and Industry Members that are Execution Venues through fixed tier fees based on market share; and (2) Industry Members (other than Execution Venue ATSs) through fixed tier fees based on message traffic.

12. Will CAT Reporters have access to their own submitted data?
The Plan Processor will provide CAT Reporters access to their submitted data for error correction purposes only.

13. Will SIP and OPRA data be included in the CAT?
Yes, the CAT is required to collect SIP and OPRA data. Specifically, the CAT NMS Plan requires that the CAT collect (from a Securities Information Processor (“SIP”) or pursuant to an NMS Plan) and retain on a current and continuing basis, in a format compatible with the Participant Data and Industry Member Data, all data, including the following: (1) information, including the size and quote condition, on quotes, including the National Best Bid and National Best Offer for each NMS Security; (2) Last Sale Reports and transaction reports reported pursuant to an effective transaction reporting plan filed with the SEC pursuant to, and meeting the requirements of, Rules 601 and 608; (3) trading halts, Limit Up/Limit Down price bands and Limit Up/Limit Down indicators; and (4) summary data or reports described in the specifications for each of the SIPs and disseminated by the respective SIP.

14. Will CAT tie the audit trail data to clearing data?
No, clearing data is not within the scope of SEC Rule 613 or the CAT NMS Plan.

15. How will the SEC and Participants access the CAT Data for regulatory purposes?
The CAT NMS Plan requires the Plan Processor to provide the SEC and Participants access to the CAT for regulatory and oversight purposes and to create a method of accessing CAT Data that includes the ability to run complex searches and generate reports. The CAT NMS Plan requires regulator access by two different methods: (a) an online targeted query tool with predefined selection criteria to choose from; and (b) extractions of data via a query tool or language allowing querying of all available attributes and data sources. Appendix D of the CAT NMS Plan sets forth additional requirements concerning regulator access.

16. What are the requirements for accessing historical CAT Data?
The CAT NMS Plan requires that the Plan Processor keep CAT Data online in an easily accessible format for six years.

17. How many regulatory users are expected to access CAT Data?
The CAT NMS Plan requires the CAT to support a minimum of 3,000 regulatory users and at least 600 such users accessing the CAT concurrently without an unacceptable decline in performance.

18. Will the CAT provide the regulators with access to uncorrected data for surveillance?
The CAT NMS Plan requires the Plan Processor to store and retain Raw Data submitted by CAT Reporters. Such Raw Data will be available to the SEC and Participants for regulatory purposes.

19. Will any existing SEC or SRO reporting systems be eliminated once the CAT is operational?
The CAT NMS Plan requires the Participants to submit rule filings to eliminate or modify any rules or systems that would be redundant of the CAT. In May 2017, certain Participants filed with the SEC rule filings to eliminate or modify certain redundant rules and systems, including rule filings related to FINRA’s Order Audit Trail System (“OATS”) and the Electronic Blue Sheets (“EBS”). In light of the delay in the commencement of CAT reporting, these rule filings were withdrawn. Nevertheless, the Participants intend to revisit the retirement of systems filings as the reporting commencement date approaches.

20. Will there be third-party auditing requirements to make sure the CAT is working properly?
The CAT NMS Plan requires the appointment of an appropriately qualified Independent Auditor of national recognition, subject to the approval of the Operating Committee by Supermajority Vote. Among other things, the Independent Auditor, in collaboration with the CCO, is required to create and implement an annual audit plan (subject to the approval of the Operating Committee) which shall at a minimum include a review of all Plan Processor policies, procedures and control structures.

Additionally, data centers housing CAT Systems (whether public or private) must, at a minimum, be AICPA SOC 2 certified by a qualified third-party auditor that is not an affiliate of any of the Participants or the Plan Processor. The frequency of the audit must be at least once per year.

21. Will the CAT be ready to accept Industry Member Data in November 2018? If not, when will Industry Members be required to begin reporting to the CAT? added 5/1/18
While SEC Rule 613(a)(3) and Section 6.7(a) of the CAT NMS Plan require that Participants begin reporting to the CAT by November 15, 2017, Industry Members (other than Small Industry Members) begin reporting to the CAT by November 15, 2018, and Small Industry Members begin reporting to the CAT by November 15, 2019, the CAT System currently is not operational and will not begin to accept order or customer data submissions from Industry Members until after November 15, 2018. Moreover, the Operating Committee has not yet approved a final version of the Industry Member Technical Specifications. In November 2017, the Participants requested an extension of these reporting deadlines so that Participants would begin reporting to the CAT by November 15, 2018, Industry Members (other than Small Industry Members) would begin reporting to the CAT by April 13, 2020 and Small Industry Members would begin reporting to the CAT by April 20, 2021 (see also Section C (Timelines and Implementation) of the General Frequently Asked Questions (FAQs) About the CAT). As of the date of this FAQ, the SEC has not granted the Participants’ request to extend the CAT reporting deadlines. The Operating Committee expects that Industry Members will begin reporting to the CAT after Participants begin reporting to the CAT and after a final version of the Industry Member Technical Specifications has been approved and published with sufficient time for development and testing. The Operating Committee will keep the industry informed of the timing for reporting to the CAT.

22. Can Small Industry Members that are not OATS Reporting Members (“Small Industry Non-OATs Reporters”) voluntarily report to the CAT prior to November 15, 2020?
added 10/17/18
Yes, Small Industry Non-OATS Reporters may voluntarily choose to begin reporting prior to November 15, 2020, the date on which Small Industry Non-OATS Reporters are required to begin reporting to the CAT. However, if a Small Industry Non-OATS Reporter begins reporting at such earlier date, (1) it must report all CAT Data required to be reported by Industry Members in accordance with the CAT Compliance Rules, the CAT NMS Plan and the Industry Member Technical Specifications, as if it were required to report such CAT Data; and (2) it may not cease to report to the CAT once it begins reporting to the CAT.

23. What are the record retention requirements for Industry Member CAT Reporters? added 11/15/18
According to each of the Participant’s CAT compliance rules, information required to be reported to the CAT must be maintained in accordance with SEC Rule 17a-4(b). This rule states that these records must be preserved for at least three years, the first two years in an accessible place. Records are not required to be retained in an electronic format; they may be retained in a paper format. However, with respect to Business Clock synchronization logs, such logs must include synchronization results for a period of not less than five years ending on the then current date, or for the entire period for which the Industry Member has been required to comply with this requirement if less than five years.

24. Is CAT a real-time system? added 11/15/18
No. Although data is permitted to be transmitted to CAT at any time, including during or after market hours, subject to certain deadlines, it is not required to be submitted in real-time.

25. Are primary market transactions subject to CAT reporting? added 11/15/18
No, primary market transactions, including IPO or secondary distributions are not subject to CAT reporting.  The Participants analyzed whether to include primary market transactions in the CAT, and concluded doing so was premature and that such an analysis would benefit from actual experience with the CAT. See Discussion of the Potential Expansion of the Consolidated Audit Trail Pursuant to Section 6.11 of the CAT NMS Plan (May 15, 2017) (available at https://www.catnmsplan.com/wp-content/uploads/2017/06/Expansion-Report-Final-5.15.17.pdf).

26. Are orders received or originated, but not executed prior to November 15, 2019, required to be reported? added 11/15/18
Orders received or originated prior to November 15, 2019 and any subsequent events related to such orders, even those occurring on or after November 15, 2019 are not required to be reported to CAT. However, firms may submit events related to orders received prior to November 15, 2019 and they will not be rejected.

27. When does Industry Member testing begin? added 11/15/18

Industry Member testing for Phase 2a of CAT reporting is scheduled to begin on August 15, 2019.

B. REPORTING REQUIREMENTS

1. Are market maker quotes required to be reported to the CAT?
Yes, market maker quotes are required to be reported to the CAT. Under the CAT NMS Plan, an Options Market Maker’s quotes in Listed Options will be reported to the CAT by the relevant Options Exchange in lieu of reporting by the Options Market Maker. Options Market Makers will not need to separately report these quotes, although they will be required to report to the Options Exchange the time at which a quote in a Listed Option is sent to the Options Exchange (and, if applicable, the time of any subsequent quote modification and/or cancellation where such modification or cancellation is originated by the Options Market Maker). The Options Exchanges are required to report such time information to the CAT in lieu of reporting of such time information by the Options Market Markers to the CAT. Equity market makers, however, are required to report their quotes to the CAT themselves.

2. What are the timestamp requirements for reporting information to the CAT?
The CAT NMS Plan requires CAT Reporters to report CAT Data to the CAT in milliseconds. To the extent that a CAT Reporter’s order handling or execution systems utilize timestamps in increments finer than milliseconds, then such CAT Reporter is required to utilize such finer increments when reporting CAT Data to the CAT.

3. Are indications of interest ("IOIs") or requests for quotes ("RFQs") reportable to the CAT? added 2/13/18
No, neither IOIs nor RFQs are reportable to CAT, as neither falls within the definition of an "order" as set forth in the CAT NMS Plan. For CAT purposes, an IOI is a non-firm expression of trading interest that contains one or more of the following elements: security name, side, size, capacity and/or price. The CAT treatment of IOIs is consistent with FINRA’s treatment of IOIs under the OATS reporting requirements. (See OATS Compliance FAQ C76 available at http://www.finra.org/industry/faq-oats-compliance-faq)

4. Are CAT Reporters required to record and report information related to any securities other than NMS Securities and OTC Equity Securities to the CAT?
added 2/13/18
No. CAT Reporters are not required to record and report information related to non-Eligible Securities to the CAT. CAT Reporters only are required to report information related to Reportable Events in Eligible Securities – that is, NMS Securities and OTC Equity Securities. (See Section 1.1 of the CAT NMS Plan (definition of Eligible Security) available at https://www.catnmsplan.com/wp-content/uploads/2017/03/34-79318-exhibit-a.pdf)

5. Are all Industry Members required to report NBBO information to the CAT? added 2/13/18
No, only CAT Reporters that are ATSs are required to submit NBBO information to the CAT. Specifically, ATSs would be required to report certain NBBO information upon the receipt and execution of an order. The CAT reporting requirement for ATS NBBO information is consistent with FINRA’s OATS reporting requirements for ATS NBBO information. (See FINRA Rule 4554)

6. Are CAT Reporters required to report to the CAT quotes received via subscriptions to receive market data from market data vendors (such as exchanges or market data aggregators)? added 3/13/18
No. CAT Reporters are not required to report to the CAT quotes received via subscriptions to receive market data from market data vendors. Under Sections 6.3(d)(iii) and 6.4(d)(i) of the CAT NMS Plan, CAT Reporters are required to report certain data to the CAT “for the receipt of an order that has been routed.” Although such quotes may fall within the definition of an “order” under the CAT NMS Plan (and SEC Rule 613(j)(8)) as “bids” and “offers,” such quotes have not been routed to the CAT Reporter, and therefore, not subject to the reporting requirement.

7. If a Reportable Event is priced in a non-U.S. dollar currency, how will such prices be reported to the CAT? added 4/4/18
If a Reportable Event is priced in a non-U.S. dollar currency, CAT Reporters are required to convert such prices into U.S. dollars based on the conversion rate applicable at the time that the Reportable Event occurred and report such prices to the CAT in U.S. dollars. The treatment of prices in non-U.S. dollar currencies is consistent with FINRA’s treatment of such prices under OATS reporting requirements (See Compliance FAQ C71 available at: http://www.finra.org/industry/faq-oats-compliance-faq).

8. How should an Industry Member report timestamps to the CAT if its order handling and order execution systems use different timestamp increments?
added 4/4/18
Section 6.8 of the CAT NMS Plan requires that “[e]ach Participant shall, through its Compliance Rule: (i) require that, to the extent that its Industry Members utilize timestamps in increments finer than the minimum required in this Agreement in their order handling or execution systems, such Industry Members shall utilize such finer increment when reporting CAT Data to the Central Repository.”  This requirement is reflected in each Participant’s CAT compliance rule series. Therefore, to the extent that any Industry Member’s order handling or execution systems utilize timestamps in increments finer than milliseconds for a given Reportable Event, such Industry Member shall record and report that Reportable Event to the CAT with timestamps in such finer increment. To the extent that an Industry Member has order handling or execution systems that utilize timestamps with varying increments, the Industry Member shall use the timestamps associated with each relevant system and Reportable Event when reporting CAT Data to the Central Repository, provided that in all instances such timestamps meet the minimum requirement of 1 millisecond for non-Manual Order Events.

9. Are Industry Members required to report to the CAT all messages related to the transmission of an order? added 4/18/18
No. Industry Members only are required to report the “details for each order and each Reportable Event, as applicable,” as set forth in Section 6.3(d) of the CAT NMS Plan, as applied to Industry Members by Section 6.4(d)(i) of the CAT NMS Plan. The definitions of “orders” and “Reportable Events” are set forth in Section 1.1 of the CAT NMS Plan. If a message does not meet the definition of an order or a Reportable Event, then details related to that message do not have to be reported to the CAT. For additional information on reporting to the CAT, please see Section F (Reporting) of the General Frequently Asked Questions (FAQs) About the CAT.

10. How should Industry Members report transactions involving fractional shares to the CAT? added 9/11/18
CAT will accept reports involving fractional shares; please refer to the Industry Member Technical Specifications for additional details.

11. What types of products will be in scope for purposes of Industry Members reporting details of Orders and Reportable Events to the CAT?
added 9/11/18
Industry Members will be required to report to the CAT details for each Order and Reportable Event involving an Eligible Security. Under the CAT NMS Plan, “Eligible Security” includes: (1) all NMS Securities, meaning “any security or class of securities for which transaction reports are collected, processed, and made available pursuant to an effective transaction reporting plan, or an effective national market system plan for reporting transactions in Listed Options”; and (2) all OTC Equity Securities, meaning “any equity security, other than an NMS Security, subject to prompt last sale reporting rules of a registered national securities association and reported to one of such association’s equity trade reporting facilities.” While the CAT NMS Plan does not define “prompt last sale reporting rules,” the Operating Committee has determined that transactions in restricted securities (as defined by SEC Rule 144(a)(3)) are not reportable to CAT because they are not subject to prompt last sale reporting rules. However, transactions in direct participation programs (DPPs) must be reported to CAT in Phase 2c of Industry Member reporting. Thesys CAT, the Plan Processor for the CAT, will begin publishing daily lists of Eligible Securities no later than March 30, 2019.

12. Are Industry Members required to report the equity leg of a complex order in Phase 2a of the revised implementation schedule? added 10/17/18
During Phase 2a of Industry Member CAT reporting, Industry Members must report the equity leg of a complex order as a simple equity order using the “OPT” special handling code. This is consistent with the handling of such orders in OATS. During Phase 2d, Industry Members will be able to report complex orders to the CAT that include both equity and option components.

13. Are all broker-dealers that receive or originate orders in equity securities and listed options subject to the CAT reporting requirements? added 11/15/18
Any broker-dealer that is a member of a national securities exchange or FINRA and receives, originates and/or handles orders in NMS Securities, which includes NMS stocks and Listed Options, and/or OTC Equity Securities must report to CAT. There are no exemptions for any such broker-dealer for any reason.

14. A registered investment advisor (RIA) operates within a US registered broker-dealer BD1 (i.e., BD1 and RIA are part of the same legal entity). The RIA originates and routes orders for execution away from BD1. What are the RIA's CAT reporting obligations? 
 added 11/15/18
Because the RIA is part of the same legal entity as the US registered broker-dealer, orders received or originated by the RIA are subject to all applicable CAT reporting rules and the US registered broker-dealer must report to CAT all orders that the RIA receives or originates. If the RIA were a separate legal entity that was not a member of a US registered broker-dealer, the RIA would not have an obligation to report orders originated and routed by the RIA to the CAT.

15. Does the CAT NMS Plan supersede Rule 17a-3? added 11/15/18
No. The CAT NMS Plan is independent from SEC Rule 17a-3 and does not replace or otherwise alter Rule 17a-3 or any other SEC rules.

16. Are US registered broker-dealers that operate in a foreign country required to comply with the CAT NMS Plan, including the clock synchronization requirements? added 11/15/18
Yes. Any broker-dealer that is a member of a national securities exchange or FINRA and receives and/or handles orders in NMS Securities, which includes NMS stocks and Listed Options, and/or OTC Equity Securities – regardless of whether they operate in a foreign country — must report to CAT and satisfy clock synchronization requirements.

17. Is CAT data required to be maintained in a format that could be resubmitted to CAT? added 11/15/18
No. The CAT NMS Plan does not require CAT Reporters to maintain data submitted to CAT in the CAT format. CAT Reporters are required to retain the data in a format that it could be retrieved and provided to an SRO or the SEC upon request. CAT Reporters are not required to store the data in an electronic system; it could be stored in a manual format.

18. What are the reporting requirements for orders received or initiated by a market maker? added 11/15/18
Market makers are subject to the same reporting requirements as any other Industry Member depending on the type of order received and how it was handled. There are no carve outs or exemptions for orders received or originated by a market maker.

19. Is a Cancel Report required for an unexecuted IOC (Immediate or Cancel) or FOK (Fill or Kill)?
 added 11/15/18
No. An IOC order, by definition, is subject to an immediate partial or full execution. Otherwise, it is automatically partially or fully cancelled. An FOK order, by definition, is subject to either an immediate execution or immediate cancellation. Therefore, it is not necessary to submit to CAT a Cancel Event for an unexecuted order with instructions to be handled as IOC or FOK.

20. What are the CAT reporting obligations when providing sponsored access or direct market access to non-BD clients? added 11/15/18
As a general matter, a broker-dealer is considered to be the executing broker in any transaction where its client (either a customer or broker-dealer client) is only able to effect the trade by virtue of the firm’s membership with the applicable market center. Thus, if a client would not be able to effect trades without the firm’s SRO membership, the firm providing the sponsored or direct market access is considered to have received an order from its client and routed it to the market center to which it provides access for the client. Accordingly, such orders must be reported to CAT by the firm providing such access.

21. How should Exchange for Physicals ("EFP") transactions be reported to CAT? added 11/15/18
Like a negotiated transaction, both the buyer and seller of the reportable security in an EFP transaction would have an obligation to report New Order Events and Trade Events at the time the transaction occurs. The New Order Event should contain the handling Instruction of E.W to identify it as an EFP. Finally, if the contra party on the trade report is not able to enter a branch/sequence number due to system constraints, they may use a Reporting Exception Code of M.

22. What are the CAT reporting obligations when one Industry Member provides sponsored access to another Industry Member? added 11/15/18
With respect to the Industry Members’ reporting obligations, when two broker-dealers have entered into a sponsored access agreement whereby one broker-dealer sponsors the other broker-dealer into a specific market center (such as a national securities exchange) by providing use of the sponsoring broker-dealer’s SRO-assigned identifier, both broker-dealers have separate and distinct CAT reporting obligations. For example, if BD A sponsors access into a national securities exchange for BD B, the CAT reporting obligation for each broker-dealer would be as follows:

Sponsored Broker-Dealer BD B (under the SRO-assigned identifier of BDBB)

New Order Event

Order Route Event indicating order was routed to BDA

Sponsoring Broker-Dealer BD A (under the SRO-assigned identifier of BDAA)
Order Accepted Event indicating the order was received from BDBB

Order Route Report indicating order was routed to a national securities exchange

The CAT reporting obligations outlined above are the same regardless of the type of connection used by the sponsored broker-dealer to access the applicable market center. For example, the CAT reporting obligations for each broker-dealer would be the same whether the sponsored broker-dealer used a direct market connection provided by the sponsoring broker-dealer, a third party service provider connection provided by the sponsoring member, or its own proprietary connection to the subject market center.

23. A broker-dealer accepts orders in Exchange Traded Managed Fund Shares ("ETMF"), or "NextShares", as defined under Nasdaq Rule 5745. When reporting orders in ETMFs to CAT should prices be reported in the "proxy price" format or using the Net Asset Value ("NAV") established at the end of the day? added 11/15/18
Industry Members must use the "proxy price" format established by Nasdaq, and not the final trade price, when reporting orders for ETMFs to CAT. 

24. Are the ALO (Add Liquidity Only), OPO (Opt Out of Locked Market) and STP (Self Trade Prevention) handlingInstructions required to be reported for orders not received by an ATS? added 11/15/18
A. No. These codes apply to ATSs and are not required to be reported by non-ATSs. However, CAT will not prevent the reporting of such codes by a non-ATS.

25. What are the CAT reporting requirements for a proprietary trading firm? added 11/15/18
Proprietary trading firms are subject to the CAT NMS Plan and SEC Rule 613. As such, proprietary trading firms that originate orders and route them out to other market centers have an obligation to report the origination of the order as a New Order Event (MENO) and the Route of the order as a Route Event (MEOR). Additionally, such firms are required to report any other related events in accordance with the CAT Reporting Technical Specifications for Industry Members.

26. Does a CRD Number qualify as an SRO assigned identifier that can be used as an IMID in cases where a non FINRA member does not have an SRO assigned identifier? added 11/15/18
A. No.  All CAT Reporters are required to obtain an SRO assigned identifier for the purposes of reporting IMIDs to CAT.

27. What are the hours for reporting to CAT? added 11/15/18
CAT will accept files 24 hours a day, 7 days a week Reports for events that occur during a particular Trading Day must be reported by 8:00 a.m., ET the following Trading day or they are marked late by CAT.

28. Are event times required to be reported in Eastern Time? added 11/15/18

Yes. All timestamps must be reported to CAT in Eastern Time. For additional information, refer to the CAT Reporting Technical Specifications for Industry Members.

29. How should an order be identified when the broker (as opposed to the trader) has price and time discretion? added 11/15/18
An order submitted by a customer who gives the broker discretion as to the price and time of execution is denoted as a "Not Held" order. For CAT, the definition of a "trader" in the context of a "Not Held" order is extended to the broker.

30. Are Cancel Reports required for expired "DAY" orders? added 11/15/18
No."DAY" orders that remains unexecuted at the close of a market day are assumed to be canceled and no Cancel Event is required.

31. Are order adjustments resulting from corporate actions such as dividends and distributions required to be reported to CAT? added 11/15/18
Adjustments to orders as the result of a corporate action are not required to be reported to CAT; however, if an order is canceled as a result of a corporate action, you must report the cancellation to CAT via a Cancel Event.

32. How should the share quantity for an order event that involves a fractional number of shares be reported? For example, an order for 100-1/2 shares is received and worked by routing away 100 shares and executing the remaining 1/2 share as principal. added 11/15/18

CAT allows for the reporting of fractional shares in decimal format. In this example, the share quantity for the New Order Event should be 100.5, the Order Route Event should be 100, and the share quantity on the Trade Event for the fractional principal execution should be 0.5.

33. How should a fractional number of shares as leavesQty be reported? added 11/15/18

If the Leaves Quantity totals a fractional number of shares, it may be reported in decimal format. For example, a Leaves Quantity of 500-1/2 shares should be reported as “500.5”.

34. An order is received after the market close and then cancelled prior to market open the next day. What is required to be reported to CAT? added 11/15/18

A New Order or Order Accept Event and an Order Canceled Event are required to be reported.

35. Are proprietary orders in OTC equity securities originated in the normal course of market making activity required to be reported to CAT? added 11/15/18

Yes. All proprietary orders originated in the normal course of market making are reportable to CAT.

36. How should prices (including fractions) be recorded in CAT? added 11/15/18

All prices must be in decimal format. The price fields are 18 numeric characters (including 8 decimal places). A price is not required to contain all 18 characters. In any price, no more than 9 characters can appear without a decimal and no more than 8 characters can appear after the decimal. For example, the following prices are valid: “125”, “000000125”, “000000125.00000000”. Any price that contains more than 18 characters, 9 characters before a decimal, or 8 characters after a decimal will be rejected.

C. DEFINITIONS

1. How has the Operating Committee defined “Trading Day”?
added 10/30/18
The Operating Committee has determined that “Trading Day” shall have the following meaning for all Eligible Securities. For Participant CAT Reporters the Trading Day is defined as beginning after midnight on one trade date and ending at midnight the next trade date. For Industry Member CAT Reporters, Trading Day is defined as beginning immediately after 4:15:00 p.m. and no fractions of a second Eastern Time on one trade date and ending at exactly 4:15:00 p.m. and no fractions of a second Eastern Time on the next trade date.

2. What is the definition of "foreign broker-dealer" for purposes of populating the originator and destination type fields for Industry Member reporting?
added 10/30/18
For purposes of reporting to the CAT, the Participants have adopted the definition of “foreign broker-dealer” as set forth in SEC Rule 15a-6(b)(3). In particular, SEC Rule 15a-6(b)(3) states: “The term foreign broker or dealer shall mean any non-U.S. resident person (including any U.S. person engaged in business as a broker or dealer entirely outside the United States, except as otherwise permitted by this rule) that is not an office or branch of, or a natural person associated with, a registered broker or dealer, whose securities activities, if conducted in the United States, would be described by the definition of ‘broker’ or ‘dealer’ in sections 3(a)(4) or 3(a)(5) of the [Securities Exchange Act of 1934].”

3. What is the definition of institution for purposes of the Account Type Code value of "A" Institution? added 11/15/18
For purposes of CAT Account Type Code, "institution" has the same meaning as the term "institutional account," as defined in FINRA Rule 4512(c).

4. The originator field has values to designate an affiliate. How should CAT Reporters determine who is an "affiliate" for these purposes? added 11/15/18

For purposes of the originator field, an "affiliate" of the firm would include a person or entity that (i) directly or indirectly controls the firm, (ii) is controlled by the firm, or (iii) is under common control with the firm. Employees of the firm would not be considered "affiliates" for purposes of CAT.

D. ORDER RECEIPT

1. If a non-US broker-dealer routes an order to a US broker-dealer, how is the US broker-dealer required to report the receipt of the order to the CAT?
added 2/13/18
The receiving US broker-dealer is required to report the receipt of an order from a non-US broker-dealer in the same way as it would report the receipt of an order from a Customer. Specifically, the receiving US broker-dealer would report the receipt of this order as the original receipt of the order from the non-US broker-dealer, and the receiving US broker-dealer would report the Firm Designated ID of the Customer, which is the non-US broker-dealer. The US broker-dealer would not report the ultimate customer of the non-US broker-dealer.

2. Are Industry Members required to report the receipt of an order to the CAT if the Industry Member rejects the order? added 4/18/18
If the Industry Member receives an order, the Industry Member must report the receipt of the order to the CAT. The details that must be reported for the receipt of an order are set forth in Sections 6.3(d)(i) (for the original receipt of an order) and 6.3(d)(iii) (for the receipt of an order that has been routed) of the CAT NMS Plan, as applied to Industry Members by Section 6.4(d)(i) of the CAT NMS Plan.

3. How would an Industry Member determine the time of order receipt?
added 4/18/18
If an Industry Member receives an order, the Industry Member must report the time of order receipt pursuant to Sections 6.3(d)(i) (for the original receipt of an order) and 6.3(d)(iii) (for the receipt of an order that has been routed) of the CAT NMS Plan, as applied to Industry Members by Section 6.4(d)(i) of the CAT NMS Plan. The time of order receipt for Sections 6.3(d)(i)(E) and 6.3(d)(iii)(C) is the time that the Industry Member receives the order.

4. A registered representative of BD A, an Industry Member CAT Reporter, creates an order for 10,000 shares that he later plans to allocate to 10 customer accounts for which he has trading discretion. What are the CAT reporting obligations for BD A for the 10,000 share order created by the registered representative? added 11/15/18
In Phase 2a, BD A will be required to report a single 10,000 share order with the time of receipt being the time the registered representatives creates the order and that includes the Firm Designated ID (FDID) of the account that the shares will be held in until the registered representative determines the allocations to the 10 individual customer accounts. In Phase 2c, BD A also will be required to report Allocation Reports for each allocation to the individual customer accounts that includes the FDID for each individual customer account.

5. BD A, an Industry Member CAT Reporter receives 10 separate and distinct customer orders that together total 10,000 shares. A registered representative of BD A sends a single 10,000 share order to the trading desk. What are the CAT reporting obligations for BD A? added 11/15/18
BDA would be required to report each of the individual customer orders.Since the registered representative did not have discretion in the accounts, but instead received orders for these accounts, each order must be reported separately; therefore, you would be required to send 10 New Order Events to CAT.

6. Should accounts belonging to family members of an employee of an Industry Member CAT Reporter be reported with the Account Type Code "E"? added 11/15/18
No. Account Type Code "E" should only be used for orders received for employee accounts, not for accounts of employees’ family members.

7. Should Account Type Code "E" be used for orders received from former or retired employees or employees of other broker-dealers? added 11/15/18
No. Account Type Code "E" should only be used for orders received for accounts of a broker-dealer’s current employees, not for orders received for the accounts of former or retired employees or employees of any other broker-dealer.

8. Should Account Type Code "E" be used if a registered representative has discretion over a customer account? added 11/15/18
No. The Account Type Code represents the type of beneficial owner of the account and, since the employee is not a beneficial owner, the Account Type Code "E" would not be appropriate. If the beneficial owner of the account was an institution, for example, an Account Type Code "A" (Institution) should be used even if an employee of the firm has discretion over the account.

9. For orders received electronically from another CAT Reporter, must the the Routed Order ID reported to CAT by the receiving CAT Reporter be in the exact format as which it was received from the sending CAT Reporter? added 11/15/18

Yes. Routed Order IDs must be reported in the same format in which they were received or the audit trail will be broken. For instance, if CAT Reporter A routes an order with a Routed Order ID of AB_0001, the receiving CAT Reporter must also report a Routed Order ID of AB_0001. In this instance, a Routed Order ID of AB001, AB_001 or anything other than the exact format of the original Routed Order ID will cause the audit trail to break and the Route Event will be marked as Unlinked.

10. How should orders received with instructions from the customer to buy as much stock as possible for a specific dollar amount (e.g., $1,000) over the course of the day (commonly referred to as "cash" orders) be reported to CAT? added 11/15/18
These orders should be reported to CAT with a special handling code of "CNH" denoting Cash Not Held. Additionally, they must be reported to CAT with a share quantity equal to the number of shares that could be purchased with the specified dollar amount based on the best available market at the time of order receipt. For example, if an Industry Member receives a cash order for $1,000 when the best available market is $20, then the Industry Member must report a share quantity of 50 in the New Order Event or Order Accepted Event. Industry Members need not submit an Order Modification Event to reflect a change in share quantity due to market fluctuations during the life of the order. However, if a customer changes the dollar amount, then an Order Modification Event must be submitted to reflect that change.

11. What is the purpose of the tradingSession field? added 11/15/18

The tradingSession field identifies the specific market session(s) during which an order is eligible to trade either based on instructions received by the Industry Member from its customer or based on communication by the Industry Member to the customer on when the order will be eligible for execution. The tradingSession field will be used in surveillance patterns to identify when orders may be eligible for execution.

12. An Industry Member receives an order with instructions to execute the order as agent or riskless principal during regular market hours. The Industry Member accumulates shares during regular market hours but does not execute the customer order until after the close at an average price of the shares accumulated during regular market hours. What should be populated in the tradingSession field on the New Order or Order Accepted Event? added 11/15/18

Since the customer instructions were to acquire shares during regular market hours and the order is executed as agent or riskless principal at the same price that the Industry Member accumulated the shares during regular market hours, the order should be reported with a tradingSession value of "REG".

13. An Industry Member receives an order with instructions to execute the order on a net basis. No specific instruction is given with respect to which trading session the order is eligible to be executed. The Industry Member accumulates shares during regular market hours but does not execute the customer order until after the close at a net price which is reported to the tape. What should be populated in the tradingSession field on the New Order or Order Accepted Event? added 11/15/18

Since the Industry Member executed the trade on a net basis, the tradingSession field should be based on when the net trade can be executed. If the execution can take place either during regular market hours or in the after hours session, the tradingSession field should be populated with "REGPOST".

14. An Industry Member receives an order with instructions to execute during regular market hours. However, when the regular trading session expires, the order is not complete and the customer instructs the Industry Member to finish the order. What should be populated in the tradingSession field on the New Order or Order Accepted Event in this instance? added 11/15/18

Since the original order was received with instructions to trade only during regular market hours, the tradingSession field must be populated with "REG". If the Industry Member records the subsequent instruction to complete the order as an order modification on its books and records, an Order Modified Event with the tradingSession of “POST” for the remaining share quantity must be reported. If the Industry Member does not record a modification to the order on its books and records, then no Order Modified Event is required.

15. If the handlingInstructions reported with an order contains instructions that reflect the order is only eligible to be traded at the time it is received, such as "Immediate or Cancel" or "Fill or Kill", or implies the time the order is eligible, such as "Market on Open", is the tradingSession field still required to be populated? added 11/15/18

Yes. The tradingSession field must be populated on all orders. However, if because of the specific nature of the handling instruction (e.g., IOC), the customer does not provide further information on the trading sessions in which the order may trade, it would be acceptable for the tradingSession field to be populated with "ALL" since no specific Trading Session was communicated by the customer to the Industry Member. This guidance to use the code of "ALL" includes scenarios where the handling instructions received with the order dictate the trading session in which order is eligible to trade, such as "Market on Open", but where no other specific instructions regarding the trading session were received from the customer.

16. If a firm does not receive specific instructions from its customer as to which session an order may trade, and the firm does not otherwise communicate to the customer that the order will only be traded during specific market sessions, what should be populated in the tradingSession field? added 11/15/18

In instances where an Industry Member does not receive specific instructions from its customer as to which session an order may trade, and the Industry Member does not otherwise communicate to the customer that the order will only be traded during specific market sessions, but, there is an understanding between the Industry Member and customer that the order is eligible to trade in a particular session(s), the tradingSession field must be populated with the code representing the specific trading session(s) in which the order is eligible to trade. For example, if an Industry Member receives orders from a particular customer or client with the understanding that orders will only be executed during regular market hours, the tradingSession field should be populated with "REG".

17. How should the tradingSession field be populated for orders that are received with instructions that they are only to be executed on a foreign market? added 11/15/18

If an Industry Member receives an order for a security that is dually listed with specific instructions that the order is to be executed on the foreign market, then the Industry Member should populate the tradingSession field with the code “FOR” (to be executed only on a Foreign Market). It is important to note that the FOR value may only be used in instances where the order can only be executed on the foreign market. If it is possible that the order could be executed in the US, then the tradingSession field should be populated with the Trading Session value that reflects the sessions during which the order is eligible to trade in the US.

18. Is the tradingSession field required to be populated for proprietary orders originated by the firm and where no customer instruction is received? added 11/15/18
Yes. The tradingSession field must be populated on all orders, including proprietary orders originated by the Industry Member. If an Industry Member’s trading system does not generate specific instructions with respect to when the order is eligible to trade, the code “ALL” should be used.

19. How should the timeInForce field be populated for "Fill or Kill" orders that contain a limit price? added 11/15/18
"Fill or Kill" orders with limit prices should have the timeInForce field populated with "DAY".

20. Why is there not an allowable value of unknown (U) for the Account Type Code field on New Order Events (MENO)? added 11/15/18

The Account Type Code field is only available on the New Order Event which reflects receipt of a Customer order or origination of an order by the Industry Member. Since the type of beneficial owner for orders received from a customer or originated by the Industry Member is known, "U" (Unknown) is not an allowed value.

21. What account type code should be used if the beneficial owner of an account for which an order is received is an employee but the account also meets the definition of an institutional account? added 11/15/18

If an order is placed by an employee of the Industry Member and the account also meets the definition of an institutional account according to FINRA Rule 4512(c), then the Industry Member must use the Account Type Code of ("E") on the related CAT New Order Event to identify that the beneficial owner of the account is an employee of the Industry Member.

22. What is the purpose of the infoBarrierID field and how should it be used? added 11/15/18
The infoBarrierID field allows firms to uniquely identify on an order-by-order basis each information barrier that meets the criteria of the “no-knowledge” exception for certain proprietary trading activity under FINRA Rule 5320. By identifying specific information barriers that are in place with respect to individual orders, both customer and proprietary, Industry Members will provide CAT with information that can be used when conducting reviews of compliance with FINRA Rule 5320. Specifically, on all events for orders received or originated at a desk or department with an information barrier in place, Industry Members must populate the infoBarrierID with the value assigned by the Industry Member to the specific information barrier in instances where the firm is claiming the “no-knowledge” exception. The use of this field allows each customer and proprietary order to be identified with a particular information barrier.
For example, if an Industry Member has two or more separate desks or departments that share a single information barrier, orders received or originated at these separate desks or departments may be reported to CAT with the same unique infoBarrierID. If, alternatively, an Industry Member has separate desks or departments that are not within the same information barrier, orders received or originated at these desks or departments would be reported to CAT with different Information Barrier IDs. Finally, if an order is received or originated within an Industry Member that has no information barriers in place, those orders must be reported to CAT with the inforBarrierID field left blank. To the extent that Industry Members populate the infoBarrierID field, the use of values must remain consistent. Therefore, once used, a value may not be reassigned to identify a different information barrier.

Reporting Scenarios
Scenario #1 – Desks or Departments Sharing an Information Barrier
• Example: Firm A has a customer facing desk (Desk 1) and a proprietary desk (Desk 2) within the same information barrier that the firm has named “AB12”. Desk 1 receives an order from a customer and Desk 2 originates a proprietary order. The CAT reporting would be as follows:

Desk 1: MENO from customer infoBarrierID: AB12
Desk 2: MENO proprietary order infoBarrierID: AB12


Scenario #2 – Desks or Departments Separated by Information Barriers
• Example: Firm A has a customer facing desk (Desk 1) that is within an information barrier the firm has named “U89T” and a proprietary desk (Desk 2) that is within an information barrier the firm has named “4RYH”. Desk 1 receives an order from a customer and Desk 2 originates a proprietary order. The CAT reporting would be as follows:

Desk 1: MENO from customer infoBarrierID: U89T
Desk 2: MENO proprietary order infoBarrierID: 4RYH


Scenario #3 – Desks or Departments with No Information Barriers Example:
• Example: Firm A has a customer facing desk (Desk 1) and a proprietary desk (Desk 2), neither of which have information barriers in place. Desk 1 receives an order from a customer and Desk 2 originates a proprietary order. The CAT reporting would be as follows:

Desk 1: MENO from customer infoBarrierID: Blank
Desk 2: MENO proprietary order infoBarrierID: Blank



23. How should the accountType be populated for orders received from an Investment Advisor or money manager exercising discretion over client accounts? Should the Account Type Code represent the status of the IA/money manager or the status of the IA/money manager’s client accounts? added 11/15/18

The accountType should always reflect the status of the entity exercising discretion. For example, an order received from an Investment Advisor that meets the definition of institution (as defined in FINRA Rule 4512(c) exercising discretion over client accounts (which could include both individual and institutional clients), should be reported to CAT with an accountType of “A” (Institutional Customer) to reflect the status of the Investment Advisor.

24. What value should be populated in the deptType field for orders in which a broker-dealer is providing direct market access to customers that are not broker-dealers? added 11/15/18

Firms providing market access to non-broker-dealer customers must populate the deptType field with the value of “A” (Agency). The value of Market Access “MA” is only used for market access orders involving another broker-dealer.

25. How should the accountType field be populated in relation to NYSE Account Type Indicators? added 11/15/18

The Exchange ATI values are separate and distinct from the accountType values. The ATI values required to be submitted to the Exchange primarily are used to identify whether an Exchange member is entering an order into Exchange systems for its account or the account of some other entity, while the CAT accountTypevalues are used to identify the type of account originating an order. CAT captures capacity and other information in fields separate and distinct from the accountType. Consequently, the Exchange ATI values will have no impact on a firm’s population of the accountType in CAT.
The below chart that reflects the most common combinations of Exchange ATIs and CAT accountType.

Capacity of Firm CAT Exchange
Firm routing to the Exchange for the account of the member Account Type Code: “O”, “P”, or “X” ATI: “P”, “Q” or “R”
Firm acting as agent on behalf of its own customer Account Type Code: “I”, “A”, “C”, or “E” ATI: “A”
Firm acting as agent for the customer of another Broker/Dealer Account Type Code: “I”, “A”, “C”, “E” ATI: “A”
Firm acting as agent for the proprietary account of another Broker/Dealer Account Type Code: “O”, “P” ATI: “A”



E. ORDER ROUTING AND EXECUTION

1. When an order is routed internally at an Industry Member, Section 6.3(d)(ii)(F) of the CAT NMS Plan ("routing of an order"), as applied by Section 6.4 of the CAT NMS Plan, requires the reporting of the identity and nature of the department or desk to which the order is routed. What is considered "routed internally"? added 2/13/18
For purposes of Section 6.3(d)(ii) of the CAT NMS Plan, an order is considered to have been routed internally at the Industry Member when the Industry Member originates or receives an order and then subsequently transmits that order to another desk or department within the Industry Member. A desk or department is interpreted as a place or system within the Industry Member where an order can be executed, either automatically or with the assistance of traders. Examples of a desk or department include an agency desk, sales desk or arbitrage desk. The Industry Member, however, is not required to report information regarding an order’s movement between two systems within the same desk or department as an internal route. The CAT reporting requirements for internal routes within an Industry Member are consistent with FINRA’s OATS reporting requirements for internal routes within a broker-dealer. (See OATS Technical Reporting Specifications (Jan. 20, 2017), Section 4.2.2 (Transmittal to a Desk or Department within a Firm), Section 4.4.5 (Partial Desk Transmittal and Subsequent Execution), Section 4.4.6 (Desk Transmittal to another Desk or Department and Subsequent Execution and Routing), Section 4.4.15 (Single Desk Usage of Multiple Order Handling Systems), and Section 4.4.17 (Multiple Desk Usage of Multiple Order Handing Systems) available at http://www.finra.org/sites/default/files/TechSpec_012017.pdf)

2. Are Industry Members required to report to the CAT the routing of an order if the routed order is rejected by the Industry Member or Participant to which the order is routed? added 4/18/18
If the Industry Member routes an order to another Industry Member or a Participant, the Industry Member must report the routing of the order to the CAT. The details that must be reported for the routing of an order are set forth in Section 6.3(d)(ii) of the CAT NMS Plan, as applied to Industry Members by Section 6.4(d)(i) of the CAT NMS Plan.

3. BD A, an Industry Member CAT Reporter, receives a customer order for 10,000 shares and subsequently routes 2,000 shares of the order to Exchange A, another CAT Reporter. BD A’s trader or trading system subsequently modifies the price of the 2,000 share order routed to Exchange A. Is BD A required to report the modification of the 2,000 share order routed to Exchange A? added 11/15/18

In Phase 2a, firm modifications of a previously routed order are not required to be reported to CAT if the destination to which the order was routed is a CAT Reporter. As a result, in the given example, the modification of the 2,000 share order sent to Exchange A would not be reportable by BD A, but would be reported to CAT by Exchange A. If the order had been routed to a foreign destination or other destination that is not a CAT Reporter, BD A would be required to report the modification to CAT. The Participants will be evaluating the impact of this guidance after implementation of Phase 2a. Based on an analysis of the impact to regulatory use of the data, such firm initiated modifications may become reportable in Phase 2c.

4. Are orders routed using ACES Pass-Thru considered manual or electronic? added 11/15/18

Orders entered directly into a Nasdaq Workstation would be considered manual. If the orders are routed into ACES Pass-Thru via an electronic order handling system, the orders would be considered electronic and a Routed Order ID must be passed through via the Branch/Sequence Number field in ACES.

5. How should orders routed to another market participant but not accepted by that market participant be reported to CAT? added 11/15/18

Routes not accepted by the receiving market participant will be required to be reported to CAT beginning in Phase 2c. These routes must be reported with a flag indicating they were not accepted by the receiving market center.

6. If a .RA transaction represents an event that is CAT reportable is the transaction report submitted to a FINRA trade reporting system with a .RA modifier required to be matched to the related CAT Trade Event? added 11/15/18

Yes. Members are required to link the .RA transaction report submitted to a FINRA trade reporting facility to the related CAT Trade Event. Industry Members should reference the CAT Reporting Technical Specifications for Industry Members for the applicable matching criteria.

7. Executed orders that exceed 100 million shares must be reported to the ORF in two or more transaction reports because the OTC Trade Reporting Facility (ORF) will not accept trades that exceed 99,999,999 shares. Can a single CAT Trade Event be matched to more than one ORF trade report? added 11/15/18

Yes. The CAT Trade linkage process will allow a single Trade Event to match to more than one trade report provided that the execution time, tapeTradeID, MPID and issue symbol on all related trade reports are identical to those reported on the CAT Trade Event.

8. How should the orderType on the Order Route Event be populated for orders routed as Stop or Stop Limit orders? added 11/15/18

The Order Route Event for orders routed as Stop orders should include an OrderType of either market or limit and a handling instruction of STOP or other appropriate handling instruction as applicable. 

9. How should the orderType be populated for orders routed with special handling instructions that may include certain pricing criteria, but are not routed with a specific limit price such as PEG orders or options related orders? added 11/15/18

Any order routed without a specific limit price, such as a PEG or options related order, should be reported with the orderType populated with “M” (Market Order). The PEG or other instruction must be included in the handling instructions on the Order Route Event.

10. Can an order be marked as Short Exempt in the shortSaleExptIndfield on the CAT Route Event if the order was reported as a regular short sale on the related New Order Event? added 11/15/18

Yes. If an Industry Member receives a Short Sale order prior to the triggering of a circuit breaker, the Industry Member would populate the side field with “short” (Short Sale). If, at the time the order is routed, a circuit breaker is triggered, the order may be marked “short exempt” consistent with SEC Rule 201, and the shortSaleExptInd on the related CAT Order Route Event must be marked as “true.”

11. At 8:30:00:000 a.m., BD1 receives a market-on-open customer order and guarantees the opening price. At 9:30:00.000 a.m., the market opens, and, at 9:35:00.000 a.m., BD1 receives the opening price information and executes the trade. What execution time should be used in the CAT Trade Event and related trade report? added 11/15/18

A. The time of execution of 9:35:00.000 a.m. must be reflected on both the trade report and the related CAT Trade Event in the eventTimestamp field. The reference time of 9:30:00.000 a.m. must be included in the trade report in the Trade Modifier 4 Time Field and is not required to be reported to CAT. The reference time will be obtained from the trade report.

12. At 8:30:00 a.m., Member BD1 executes a customer order at the 4:00:00 p.m. closing price from the previous day. What execution time should be used in the CAT Trade Event and related trade report? added 11/15/18

Because the trade was executed on a different day from the reference price, the actual time of execution must be reflected in the eventTimestamp field on the CAT Trade Event and in the Execution Time field on the trade report for both OTC equity securities and NMS stocks. Please refer to TR FAQs 408.3, 408.4 and 408.5 for more information on the trade reporting requirements for PRP trades.

13. Is a firm that routes an order away from the firm for execution required to report routing instructions (e.g., specific order types and terms and conditions used for the order when sending to an exchange) to CAT in the handlingInstructions field on the CAT Order Route Event? added 11/15/18

A. Yes. In CAT, routing instructions must be reported by the routing firm. If the routing instructions are the same as the the instructions received by the firm, then the firm may populate the handlingInstructions field with the value “RAR” (Routed as Received).

14. Firm A routes an order to Firm B with instructions to send the order to another member or exchange for execution with specific terms and conditions that the executing venue must follow. Must Firm B report the terms and conditions intended for the executing venue as handling instructions on Firm B’s CAT Order Accepted Event in the handlingInstructions field? added 11/15/18
Yes. Firm B must report the instructions it received from Firm A as to how Firm B was instructed to handle the order. In this example, Firm A instructed Firm B to route the order directly to the executing venue. The terms and conditions given to the executing venue are required to be reported to CAT using the values available in the handlingInstructions field in the CAT Reporting Technical Specification for Industry Members. Note exchange specific values are not used, but rather an allowed value that most closely reflects the specific instruction sent to the exchange.

15. Are executions of orders routed as agent to an exchange or another CAT Reporter required to be reported by the routing firm? added 11/15/18

Orders that are routed as agent to another CAT Reporter (either an exchange or Industry Member) and executed by the receiving party do not require the submission of a Trade Event or Order Fulfillment by the routing firm unless the order was routed to a foreign venue which does not report to CAT. If the order was worked via a representative order, however, where the representative order was routed away instead of the underlying customer order, an Order Fulfillment Event would be required. See Appendix C of the Technical Specifications for more information on the reporting requirements for representative orders.

16. A firm performs multiple functions on the same desk or within the same department, such as program trading and non-program trading. Is an Internal Route Event required for orders sent between traders that perform those separate functions? added 11/15/18

If separate and distinct functions are performed within the same desk or department of a firm, an Internal Route Event may be required if an order is passed between traders who perform different functions.  For example, an order would be considered to have been transferred to another department for CAT reporting purposes, if it were transferred between functions that the firm considers to be independent aggregation units for purposes of SEC Regulation SHO (See SEC Rule 200(f)). 

17. When a firm has multiple functions performed on the same desk or within the same department, how does the firm determine which receivingDeskType to use in the CAT Internal Route Event for orders received by such multi-function desks? added 11/15/18

If an order is transmitted to a desk that performs multiple functions, the firm should populate the receivingDeskType with the code that identifies the function for which the specific order was routed to the desk.  For example, if a program trading order is routed to a desk that engages in arbitrage activities as well as program trading, the CAT Internal Route Event should include a receivingDeskType of “PT” to indicate the order was transmitted to the program trading function on the desk.

18. Should baskets submitted to NYSE’s Crossing Session II be reported to CAT as an Order Route event or a Trade Event? added 11/15/18

Members that have either facilitated a basket trade or crossed two customers’ baskets and submitted the information to NYSE’s Crossing Session II, should report these transactions to CAT as a Trade Event. The event timestamp reported to CAT should be the time the member crossed or facilitated the basket and not the acknowledgment time received back from NYSE. Further, the Trade event must contain the marketCenterID of “N” to designate the New York Stock Exchange and the tapeTradeID should be populated with “NYSE CS2” to denote the transaction was reported to the Crossing Session II.

19. When a broker-dealer routes an order to an Industry Member, the routing broker-dealer may not include the special handling details associated with the original customer order as received by the routing broker-dealer. Are these original special handling details expected to be reported by subsequent Industry Members to which the order is routed? added 11/15/18
No. Each Industry Member is only required to report the order information that was received by that Industry Member. Thus, for an order received from another broker-dealer, the receiving Industry Member is only required to report the special handling instructions that are sent by the sending broker-dealer to the receiving Industry Member.

20. What are the CAT reporting requirements when a trade that was reported to a TRF is cancelled? added 11/15/18
If a trade is reported to both CAT and a TRF/ADF/ORF, and later cancelled in the TRF/ADF/ORF, the cancellation is not required to also be reported to CAT. CAT will obtain the cancellation information from the TRF/ADF/ORF.

21. If a trade is corrected in a TRF, what must be reported to CAT? added 11/15/18

If the original trade was reported to CAT and correctly linked to the original TRF report, no further CAT reports are required for the correction. CAT will obtain that information from the TRF data. If, however, any part of the order prior to the execution was reported to CAT incorrectly, those corrections must be submitted to CAT.

22. If a trade is reported on an “as of “basis to the TRF, what are the CAT reporting requirements? added 11/15/18

If the required CAT order events, including the New Order and Trade Event were not previously reported to CAT, they must be reported and will be marked late. The late reported CAT Trade Event must link to the “as of” trade report submitted to the TRF. If the CAT Trade Event was reported on time, it would have been marked as unlinked since there was no related trade report available for linking. After processing, the unlinked CAT Trade Event will be marked as corrected provided it could be linked to the “as of” TRF report.

23. Is the TRF reported Branch/Sequence Number or FINRA Compliance Number required to be unique within an IMID (e.g. MPID) within a day? added 11/15/18

No. However, the tapeTradeID reported in the CAT Trade Event must precisely match the Branch/Sequence Number or FINRA Compliance Number reported to a TRF (including spaces and capitalization).

24. Can the TRF reported Branch/Sequence Number or Finra Compliance Number contain a space? added 11/15/18

Yes. This number can contain any ASCII characters, except the specified file delimiters. The tapeTradeID contained in the CAT Trade event must the exact same as that contained in the TRF Report, including preceding zeros or spaces.

F. REPRESENTATIVE ORDERS

1. When an order is executed on a riskless principal basis and reported to a TRF using the alternative method of trade reporting, is the non-media riskless principal TRF report required to be linked to the related CAT Order Fulfillment Event? added 11/15/18

A. No. Unlike OATS, the CAT Order Fulfillment report is not required to be linked to any related non-media riskless principal regulatory report. Because the street side order and any related media reported trades are linked to the related customer orders in CAT (subject to the phased implementation schedule), linkage of the CAT Order Fulfillment Report to the related non-media TRF report is not required.

2. How does a CAT Reporter determine the manner in which an agency order filled on an average price basis should be reported? More specifically, when should an Order Fulfillment (as reflected in Scenario 2.1.3 Customer Order Fulfilled on an Average Price Basis in the CAT Industry Member Reporting Scenarios document v1.0) be used instead of Route Reports? added 11/15/18

If an Industry Member’s order handling and/or reporting system does not allow for a route to be directly associated with the customer order or child order (with the same Order ID) and instead must generate/report a route from a separate order (with a different Order ID) created by the Industry Member for the purpose of working the customer order, then an Order Fulfillment should be used as described in Scenario 2.1.3 Customer Order Fulfilled on an Average Price Basis in the CAT Industry Member Reporting Scenarios document v1.0.

3. BD A receives orders from four separate customers totaling 10,000 shares, all with instructions to handle as agent. BD A sends one larger order, properly marked as agency, to a Participant exchange or another market center in an attempt to obtain an execution for these four orders. BDA holds the individual customer orders and never gives up control of these orders to any other broker-dealer or market center. Upon receipt of an execution of the larger order, the shares are recorded in my firm's agency allocation account. Subsequently, BDA allocates the shares from the agency allocation account to the individual customer accounts based upon a predetermined allocation methodology. How should these orders and related executions be reported to CAT? added 11/15/18

In this scenario, the Industry Member must report four New Order Events to reflect the receipt of each customer order and an individual Order Fulfillment Event to show the fill of each customer order. Additionally, the Industry Member must report a New Order Event to reflect the aggregated representative order and any related Route Events. In Phase 2c, the street side representative order must be linked to the individual customer orders.

G. Manual Orders

1. Is a CAT Reporter required to report two separate timestamps for Manual Order Events? added 2/13/18
Yes, a CAT Reporter is required to report two separate timestamps for Manual Order Events that are entered into an electronic system. If an order is received manually and then later entered into an electronic system for further handling and execution, the CAT Reporter must report both the manual receipt time and the Electronic Capture Time. Specifically, CAT Reporters are required to record and report: (1) the time of a Manual Order Event in increments up to and including one second; and (2) the time when a Manual Order Event has been captured electronically in an order handling and execution system of the Participant or Industry Member ("Electronic Capture Time") in milliseconds. (See Section 6.8 of the CAT NMS Plan available at https://www.catnmsplan.com/wp-content/uploads/2017/03/34-79318-exhibit-a.pdf)

2. Are orders received via the telephone and then manually entered into a clearing firm's system considered electronic? added 11/15/18
No. Orders received manually by an Industry Member, such as via the telephone, and then entered by the Industry Member into its clearing firm’s system are considered manual orders received by the correspondent and routed electronically to the clearing firm. As such, the correspondent Industry member would report a New Order with the manualFlag set to True and an Order Route Event with the manualFlag set to False. The clearing firm would report an Order Accept Event with the manualFlag set to False.

3. What does the manualFlag field represent? added 11/15/18

The manualFlag field identifies if an order was received manually or electronically. If the manualFlag is set to True, then the eventTimestamp may be reported in second granularity. If the manualFlag is set to False, then the event timestamp must be reported to at least the millisecond granularity. Additionally, if an event is received manually and then captured electronically, then the manualFlag must be set to True, the eventTimestamp populated with the time of receipt and the electronicTimestamp field must be populated with the time the order was electronically captured.

H. ATS

1. If an Industry Member holds a peg order, is the Industry Member required to report to the CAT a modification to the peg order every time the market moves?
added 5/16/18
Each time an Industry Member reprices a peg order based on a market move (i.e., when there is a change in the national best bid or offer or the best bid or offer on a particular exchange, as applicable based on the terms of the order), the Industry Member must report a price modification of the peg order to the CAT pursuant to Section 6.3(d) of the CAT NMS Plan, as applied to Industry Members by Section 6.4(d)(i) of the CAT NMS Plan, if the price is modified. If the Industry Member does not reprice a peg order when the market moves, the Industry Member does not need to report a modification of the peg order to the CAT since the order was not modified by either the customer or the Industry Member. For example, for both displayed and non-displayed alternative trading systems (ATSs), if an ATS’s matching engine reprices a peg order when the market moves, the price modification must be reported to the CAT. If a matching engine does not reprice a peg order when the market moves, there is no requirement to report a price modification to the CAT.

Example 1: A display ATS receives a buy order with a primary peg instruction and a limit price of $10. The current market is 9.98 and accordingly, the order is displayed at 9.98. The NBB subsequently moves to 9.99. The ATS reprices the order and re-displays it at 9.99. The re-pricing of this order must be reported to CAT by the ATS.

Example 2: An ATS receives a buy order with a primary peg instruction and a limit price of $10. The order is not displayable or routable and the ATS has no sell orders that are eligible to trade with the buy order. The NBB subsequently moves to 9.99 and the ATS receives no other sell orders that are eligible to trade with the buy order. The ATS takes no action on the open buy order when the NBB moves to 9.99, therefore there is no CAT reportable event.

Example 3: An ATS receives a buy order with mid-point peg instruction when the NBBO is 9.85 x 10. The order is not displayable or routable and the ATS has no sell orders that are eligible to trade with the buy order. The NBBO subsequently moves to 9.90 x 10. The ATS then receives a market order to sell that is eligible to trade with the buy order and the two orders are crossed at 9.95. Because the ATS did not re-price the buy order prior to executing it, there is no CAT reportable event required to reflect a price modification of the buy order to 9.95.

2. Must a FINRA member ATS use its ATS MPID to report ATS activity to CAT? added 11/15/18
Yes. FINRA member ATSs must use the ATS MPID when reporting ATS activity to CAT.

3. What should be populated in the "nbboTimestamp" fields on the New Order, Order Accept, Child Order, Order Modified, Order Adjusted and Trade Events for ATSs? added 11/15/18
The nbboTimestamp field should be populated with the time that the ATS referenced, or "looked up" the existing reference price.

Example: 

A sell order is received by an ATS at 10:00:00:007.  The ATS must then identify the NBBO in effect to determine if the order is marketable. The relevant times are as follows:
9:57:47.768    NBBO becomes 10 bid, 10.02 offer 1×1
9:58:23.324    NBBO is updated to 10 bid, 10.02 offer 5 x1
10:00:01.490    
NBBO is updated to 10.01 bid, 10.03 offer 1 x 1
ATS Order Receipt Time:    10:00:00:007
ATS looks up existing NBBO:    10:00:00.008
The ATS should report a timestamp of 10:00:00.008 in the nbboTimestamp field and an NBBO in effect at time of order receipt of 10 bid, 10.02 offer.  The size is not required to be reported but is optional.

4. A firm operates a display ATS that only publishes periodic snapshots of aggregate quotes based on a pre-determined frequency (e.g., every X milliseconds). The aggregate quote published only reflects open interest at the time of the snapshot. Consequently, there may be orders that have been received, executed, canceled, or repriced as the result of a change in NBBO (or other relevant reference price), but no aggregate quote will be published until the time of the next snapshot. Is the ATS required to generate and report order display modifications under these circumstances? added 11/15/18
For purposes of FINRA Rule 4554, because display is not on an order by order basis, an ATS that only displays aggregate level pricing information at pre-determined intervals of time is not required to report order display modifications to CAT.

5. An ATS receives an IOC order and prior to obtaining any applicable reference price necessary to process the order, the ATS determines there is no contra side interest available for execution. Consequently, the ATS immediately cancels the order back to the subscriber without ever determining an applicable reference price. What should the ATS populate in the NBBO (or other applicable reference price) information fields? added 11/15/18
Because the order was cancelled before the ATS referenced the NBBO (or other applicable reference price), there would be no such information to report.  Therefore, the ATS should populate the nbboSource field with “NA”.

6. How should an ATS report NBBO (or other relevant reference price) information if the NBBO is invalid or one sided at the time the ATS referenced the NBBO (or other relevant reference price)? added 11/15/18
One sided or invalid prices should be reflected as zero.  The time the ATS referenced the NBBO (or other relevant reference price) and NBBO source must still be reported.

7. Is the handlingInstructions field required to be populated by ATSs when the atsOrder Type includes a condition that is also an allowable handlingInstruction value, such as Add Liquidity Only? added 11/15/18
If the ATSs’ Order Type encompasses the handling instruction, then the handlingInstructions field would not be required. For example, if ATS 1 has an Order Type that is NBBO midpoint peg, add liquidity only, then the handling instruction of Add Liquidity Only ("ALO") would not be necessary since the Order Type includes the add liquidity only restriction.

I. FOREIGN SECURITIES

1. Are orders in foreign securities reportable? added 2/21/18
The origination or receipt of an order involving any security that meets the definition of an NMS security pursuant to SEC Rule 600 must be reported to the CAT, regardless of where the order is ultimately executed. If the order is sent to a foreign market for execution, the CAT Reporter is required to report the relevant Reportable Events for the order (e.g., origination or receipt of the order and the routing of the order to the foreign market). All prices must be converted into U.S. dollars based on the conversion rate applicable at the time of the transaction.

Orders in foreign equity securities that do not meet the definition of an NMS stock pursuant to SEC Rule 600 are required to be reported only in those instances where the resulting execution is subject to the transaction reporting requirements in FINRA Rule 6622. The requirements of FINRA Rule 6622 do not apply to transactions in foreign equity securities provided that: (1) the transaction is executed on and reported to a foreign securities exchange; or (2) the transaction is executed over the counter in a foreign country and is reported to the regulator of securities markets of that country.

The CAT reporting requirement for foreign securities is consistent with FINRA’s OATS reporting requirements for foreign securities. (See OATS OTC FAQs for Foreign Equity Securities Traded in the US and Foreign Equity Securities available at http://www.finra.org/industry/faq-oats-otc-faq;
and OATS for all NMS Stocks FAQ 6 available at http://www.finra.org/industry/faq-oats-all-nms-stocks-faq)

2. If an order is received under the US symbol of a foreign equity security ( the security also trades in the US) and the order is executed on a foreign market the following day, does the firm have a CAT reporting obligation? added 11/15/18

Yes. If an order is received in the US symbol and the market of execution is not known by the end of the CAT Trading day on which the order was received, the order must be reported to CAT. For example, if a firm receives an order in a foreign listed equity security also trading in the US and the order is not executed before the time the firm is required to report to CAT, then the firm should submit the New Order Event to CAT. If the order is later executed in a foreign market, then the firm would submit an Order Route event indicating that the order was sent to a foreign broker-dealer or market, as applicable.

3. If an order in a foreign security is broken up and executed across multiple markets, both foreign and domestic, what are the CAT reporting obligations? added 11/15/18

Orders received for foreign equity securities traded in the US must be reported if any resulting executions are subject to the requirements of FINRA Rule 7220. In this example, since part of the order is executed over the counter in the US and therefore subject to the requirements of FINRA Rule 7220, the firm would have an obligation to record and report a New Order Event reflecting the receipt of the order, an Order Route Event for each component sent abroad and a Trade Event for each component executed in the US.

4. If a firm receives an order in a foreign equity security traded in the US and routes the order to another broker-dealer who then executes the order in the US, what is the reporting obligation of the routing firm? added 11/15/18

Because the resulting execution of the order was subject to the transaction reporting requirements of FINRA Rule 7220, both the routing firm and the firm ultimately executing the order have a CAT reporting obligation.
Foreign Equity Securities

5. What are an Industry Member's CAT reporting obligations when a US symbol is not available on the day an order is received and executed? For example, an order is received and executed on Monday at which time a symbol is requested. The symbol, however, is not issued until Wednesday. added 11/15/18

Industry Members receiving orders in foreign equity securities without a US symbol for which they have a trade reporting obligation must: 1) promptly request a symbol; and 2) comply with the CAT recording requirements under the Plan. Once a symbol becomes available, the Industry Member must report the trade to FINRA pursuant to FINRA Rule 7220 and report all applicable information to CAT in accordance with the Plan. Data submitted to CAT with an Event Timestamp prior to the symbol issuance date will not be marked late. Industry Members may, however, be asked to demonstrate that a symbol was promptly requested upon execution of the trade.

6. A firm receives directed orders from customers for foreign equity securities that are also traded over the counter in the United States and meet the definition of OTC equity .The customer instructions require the firm to execute the order in a particular foreign market, and the order cannot be executed, in whole or in part, in the United States. Is this type of directed order required to be reported if the order is not executed by the end of the CAT Trading day? added 11/15/18

If the terms of the directed order require the firm to execute the order in a foreign market and the firm knows that the order will be executed and reported in the foreign market, the firm would not be required to report to CAT any events related to that order.

7. A firm receives orders in OTC equity securities that are listed on foreign exchanges. Because of time zone differences, sometimes the foreign market to which a firm has determined to route the order for execution has already closed before the end of the current CAT Trading Day. Therefore, the order cannot be executed until the following day after the foreign exchange has opened for trading. Since the order is not executed before the time the firm is required to report information to CAT on the day the order is received, must the order be reported to CAT even though, absent unusual circumstances, it will be executed on and reported to a foreign market? added 11/15/18

No. If an order is received in a foreign symbol or the equivalent US symbol and the firm has decided to send the order to a foreign market for execution, the order is not CAT reportable. For example, if a firm receives an order in a foreign-listed equity security that also trades in the US, and has decided to send the order to a foreign market for execution, but the order can not be executed before the end of the current CAT Trading Day because the foreign market is closed, the order would not be CAT reportable. If, for any reason, the order is not ultimately executed on the foreign market, the firm would be required to submit all CAT reportable events related to that order with the original time of order receipt as the eventTimestamp. CAT will mark these events late. Firms that display a pattern or practice of reporting orders late may be subject to formal review for potential violations of the CAT Rules.

J. OTC EQUITY SECURITIES

1. Are quotations in OTC Equity Securities that are sent by an Industry Member to foreign exchanges reportable to CAT?
added 10/17/18
Quotations in OTC equity securities sent to foreign exchanges are required to be reported only in those instances where a resulting execution is subject to the transaction reporting requirements in FINRA Rule 6622. The requirements of FINRA Rule 6622 do not apply to transactions in foreign equity securities that are not NMS Stocks provided that: (1) the transaction is executed on and reported to a foreign securities exchange; or (2) the transaction is executed over the counter in a foreign country and is reported to the regulator of securities markets in that country. Note that the guidance in Interpretive FAQ #7 applies to quotations since quotations are “orders” under the CAT NMS Plan.

2. What are the CAT reporting responsibilities with respect to OTC Link messages? added 11/15/18

As a general matter, based on the Participants current understanding of OTC Link functionality the Participants consider the use of OTC Link messages to be negotiations since these messages are not immediately actionable and require trader intervention before a trade can occur. Therefore, no CAT reporting obligation exists until the terms and conditions of a trade have been agreed upon.

K. OPTIONS

1. Will Options Clearing Corporation (OCC) data be included in the CAT?
OCC data regarding symbology and corporate actions will be included in the CAT.

2. What Industry Member Data will be reportable to the CAT during Phase 2b of the revised implementation schedule? added 10/17/18
During Phase 2b of the revised implementation schedule, Industry Members will be required to report to the CAT Industry Member Data related to Eligible Securities that are options and that is related to Simple Electronic Option Orders, excluding Electronic Paired Option Orders. “Simple Electronic Option Orders” mean orders to buy or sell a single option that are not related to or dependent on any other transaction for pricing or timing of execution that are either received or routed electronically by an Industry Member CAT Reporter. “Electronic Paired Option Orders” mean electronic option orders that contain both the buy and sell side that is routed to another Industry Member or exchange for crossing and/or price improvement as a single transaction on an exchange. Further, the events related to Simple Electronic Option Orders subject to reporting in Phase 2b are limited to those events which involve electronic receipt of an order, or electronic routing of an order. Electronic receipt of an order is defined as the initial receipt of an order by an Industry Member in electronic form in standard format directly into an order handling or execution system. Electronic routing of an order is the routing of an order via electronic medium in standard format from one Industry Member’s order handling or execution system to an exchange or another Industry Member.

3. Are responses to auctions reportable in phase 2b? added 10/30/18
Yes. Responses to auctions of simple orders and paired simple orders are reportable in phase 2b. The order must be reported with a handling instruction of “AucResp” and the Auction ID must be reported in a name/value pair.

4. Are options assignments required to be reported to CAT? added 11/15/18

No. Options assignments (the exercise of options contracts) are not orders, as defined by by SEC Rule 613. Therefore, options assignments are not required to e reported to CAT.

5. Is the OPT handling instruction appropriate for buy/writes or option exercises and assignments? added 11/15/18

In Phases 2a, 2b and 2c the OPT handling instruction is to be used in instances involving a combination trade in which the cash leg is the second leg of the transaction and the terms and conditions of the cash order are contingent upon the related option trade. In other words, the “OPT” code is appropriate when the price or size of a cash order is contingent upon a related option trade. The code is not intended to be used in conjunction with option exercises or assignments, which do not constitute CAT Reportable Events. The code would only be appropriate for a buy/write if, as explained above, the terms and conditions of the cash order were contingent upon the related option transaction. The reporting requirements of this scenario will change in Phase 2d.

L. EQUITY FLOOR BROKERS

1. How should orders sent to a Floor Broker on the New York Stock Exchange, NYSE American LLC or NYSE Arca, Inc. be reported to CAT? added 11/15/18

As described in the CAT Industry Member Technical Specification (“Tech Spec”) document published by Thesys CAT LLC, certain events that occur within systems used by Floor Brokers on the NYSE’s equities or options floors are required to be reported to CAT pursuant to SEC Rule 613(c)(7). Generally, Floor Brokers on both the equities and options trading floors receive orders from one of several sources and such orders are processed via an order management system (“OMS”) before they are entered into an exchange for execution. For example, Floor Brokers may receive an order from within their own firm, which has electronically routed the order from one of its internal systems into the Floor Broker’s OMS. For CAT reporting purposes, that transfer of an order from the firm’s own internal system to that firm’s Floor Broker OMS on the floor of the NYSE is likely CAT reportable as an intra-firm transfer/internal route as described in the Tech Specs and required by Rule 613(c)(7)(ii)(F) and Rule 613(c)(7)(iii). In another scenario, Floor Brokers may receive an order from an outside source and enter it into the firm’s Floor Broker OMS. In this scenario, the Floor Broker must record and report the time of the order receipt as described in SEC Rule 613(c)(7)(i)(E), Appendix C at section A(1)(a)(iii) of the CAT NMS Plan and also described in the Tech Specs.
After a Floor Broker receives the order and the order is in the Floor Broker’s OMS, the Floor Broker determines how to represent their order. A Floor Broker may, for example: 1) send the order back to the source if routed directly to the Floor Broker’s OMS by another desk within the Floor Broker’s firm; 2) electronically send the order directly to an exchange system for execution; 3) electronically route the order to a third-party provider that determines where to route the order (to an exchange or other execution venue); or 4) orally represent and then execute the order on the floor. Each of these scenarios may include events that trigger an obligation to report to CAT.
In the first three scenarios, electronically routing an order from the Floor Broker’s OMS to another of the Floor Broker firm’s internal systems, to an exchange, or to a third-party provider constitutes a CAT-reportable event pursuant to Rule 613(c)(7)(ii). For the fourth scenario, if the Floor Broker orally represents an order on the trading floor, no reportable events are occurring until an execution is reported. The execution triggers a CAT-reporting obligation for the Floor Broker, who is responsible for reporting the time of order execution pursuant to SEC Rule 613(c)(7)(v) and as described in the Tech Spec. The time of execution as required by Rule 613(c)(7)(v)(C) is the time at which the Trading Official (options floors) releases the order to the Floor Broker for reporting to the exchange, or is the time at which the DMM (equities floor) reports the matched trade to the exchange. The Floor Broker is responsible for reporting each CAT-reportable event required by Rule 613, although a Floor Broker may arrange for the exchange to report on the Floor Broker’s behalf. The Floor Broker should contact NYSE Member Services to ensure reporting by the industry member reporting deadlines.

M. FIRM DESIGNATED ID

1. What is a Firm Designated ID (“FDID”)? added 8/15/18
FDID is defined in Section 1.1 of the CAT NMS Plan as “a unique identifier for each trading account designated by Industry Members for purposes of providing data to the Central Repository, where each such identifier is unique among all identifiers from any given Industry Member for each business date.”

Under the CAT NMS Plan broker-dealers are required to report the FDID on each new order submitted to the Central Repository and the Central Repository will associate specific customers and their Customer IDs with individual order events based on the reported FDID. Given the purpose of the FDID under the CAT NMS Plan, it is important that this identifier be consistent across each business day of a broker-dealer.

2. Can actual account numbers be used as the FDID when submitting data to CAT? added 8/15/18
The use of an actual account number as the FDID is prohibited to ensure the capture of sensitive data in CAT is minimized when its inclusion is not required to achieve the objectives of CAT. Specifically, the Operating Committee has determined that Industry Members must not assign as an FDID a customer’s account number or any other number associated with the customer’s account that could be used to effect a transaction in the account. Acceptable FDIDs may include, without limitation, a newly created unique identifier or an internal only identifier used by a broker-dealer that cannot be used to effect a transaction. Industry Members also may employ a masking methodology that would mask the actual account number prior to submission to CAT so that it could still be used by CAT to identify a single trading account within the Industry Member, but the identifier provided to CAT could not be used to effect a transaction in the account.

Please note that a proposed amendment to the CAT NMS Plan will be filed to reflect the use of FDID as described in this interpretive FAQ.

3. Can FDIDs change each Trading Day? added 8/15/18
No. Unless a new account or entity identifier is assigned to a client or customer, each FDID must be unique and persistent for each trading account on any given business day so that a single account may be tracked across time within a single broker-dealer. For example, if an Industry Member assigns a new account or entity identifier to a client or customer for any reason, such as due to a merger, acquisition or some other corporate action, then a new FDID may be created to identify the new account identifier/entity identifier in use at the Industry Member for the entity.

4. Which FDID must be provided in scenarios involving managed accounts where an order may be placed in a master account with subaccount allocations made at a later time? added 8/15/18
The account or entity identifier used to place the order must be reported. In scenarios where a master/top account or entity identifier is used to place an order, the FDID representing the master/top account or entity identifier should be reported to CAT. In such scenarios, the FDID represents the master/top account or entity that is authorized to place orders for one or more legal entities or customers.

5. Which FDID must be provided for firm owned or controlled accounts? added 8/15/18
The FDID representing the account identifier used by the firm for the specific firm owned or controlled account in which the order was originated should be reported to CAT. For example, firms must specify whether an account used for a Reportable Event was a market making account, other proprietary trading account, agency allocation account or error account.

6. If an Industry Member CAT Reporter uses multiple reporting vendors, should the FDID be reported by each vendor submitting new order events on behalf of the Industry Member CAT Reporter? added 8/15/18
Yes. CAT allows multiple vendors to submit data on behalf of a single Industry Member CAT Reporter. Each vendor reporting new order type events on behalf of an Industry Member CAT Reporter would have to provide the FDID as required. An Industry Member CAT Reporter must ensure that the same FDID is used by all vendors submitting Reportable Events to CAT involving the same unique trading account at the Industry Member. It would not be acceptable for different vendors to use different FDIDs to represent the same unique trading account.

7. How will regulators use the FDID? added 8/15/18
Before the reporting of Customer Account Information and Customer Identifying Information begins on November 15, 2021 for Industry Members (other than Small Industry Members) and on November 15, 2022 for Small Industry Members, regulatory users of the CAT will use FDIDs to identify whether the same account is trading within a single broker-dealer. After the reporting of Customer Account Information and Customer Identifying Information begins, FDIDs will be used to link accounts to specific customers, including mapping accounts with common ownership (for instance, where a customer is associated with more than one FDID).

Please note that a proposed amendment to the CAT NMS Plan will be filed to reflect the phased approach for Industry Member CAT reporting.

8. When will Industry Members be required to report the FDID to the CAT? added 8/15/18
The Participants will permit Industry Members (other than Small Industry Members) and Small Industry Members that are required to record and report information to FINRA’s Order Audit Trail System pursuant to applicable SRO rules (“Small Industry OATS Reporters”), but not require, to report FDIDs for the original receipt or origination of an order that is required to be reported in Phase 2a to the CAT from November 15, 2019 through February 24, 2020. After February 24, 2020, all Industry Members that are required to report the original receipt or origination of any order must report FDIDs for such original receipt or origination of any order.

Please note that a proposed amendment to the CAT NMS Plan will be filed to reflect the phased approach for Industry Member CAT reporting.

N. THIRD PARTY REPORTING

1. Can CAT Reporting Agents report CAT Data to the CAT on behalf of an Industry Member without the Industry Member’s consent?
added 10/17/18
No, a CAT Reporting Agent may not report CAT Data to the CAT on behalf of an Industry Member without the Industry Member’s consent. As required in the CAT Compliance Rules, an Industry Member may enter into an agreement with a CAT Reporting Agent pursuant to which the CAT Reporting Agent agrees to fulfill the obligations of such Industry Member under the CAT Compliance Rules. Any such agreement is required to be evidenced in writing and the agreement must specify the respective functions and responsibilities of each party to the agreement that are required to effect full compliance with the requirements of the CAT Compliance Rules. Such agreement should include the date on which the CAT Reporting Agent should commence reporting to the CAT on behalf of the Industry Member. In addition, to begin reporting to the CAT, the Industry Member and the CAT Reporting Agent must complete the onboarding process with the Plan Processor. Notwithstanding the existence of an agreement with a CAT Reporting Agent, an Industry Member remains primarily responsible for compliance with the CAT reporting requirements.

2. If one or more third parties (e.g., clearing firms) is used by an Industry Member to report data to CAT, who does the compliance obligation belong to if the third-party reporter is also a CAT Reporter? added 11/15/18
Each Industry Member is responsible for the timeliness, accuracy and completeness of the data it is required to report to CAT regardless of who transmits the data to the CAT. Therefore, even if an Industry Member uses another CAT Reporter to report data on its behalf, the Industry Member remains fully responsible for the timeliness, accuracy and completeness of the data. Each Industry Member must have written procedures in place to ensure that the information reported by or on its behalf is timely, accurate, and complete.

3. May an Industry Member use more than one third party to transmit data on its behalf to CAT? added 11/15/18
Yes. More than one third party may transmit order events to CAT on behalf of a single Industry Member. Industry Members are responsible for ensuring that all required information is submitted to CAT via the third parties, and that the third parties do not send duplicate information to CAT.

4. Are there any scenarios where an Industry Member can assume another CAT Reporter will report an order to CAT on its behalf absent any specific reporting agreement between the two CAT Reporters? added 11/15/18
No. There are no scenarios where one CAT Reporter has an obligation to report orders on behalf of another Industry Member that uses its systems to route or execute orders. An agreement to use any third party for reporting to CAT must be agreed to by the two parties, evidenced in writing, and retained by both parties to the agreement. The agreement must specify the respective functions and responsibilities of each party. An Industry Member cannot assume that any third party will perform reporting on its behalf.

O. TECHNICAL REQUIREMENTS

1. What are the mechanisms for reporting to CAT? added 11/15/18

Thesys CAT provides two mechanisms for submitting files: SFTP via a private network, and the Web via Reporter Web Portal. These mechanisms are described in the CAT Reporting Technical Specifications for Industry Members.

2. What access methods are available to Industry Members to report to CAT? added 11/15/18

CAT supports network access for reporting order events via VPN or direct connections (i.e., cross connects). Thesys CAT will organize the VPN and cross-connect setups between Industry Members and Thesys CAT. For direct connections, Industry Members will be responsible for procuring cross-connects to and within the Equinix Data Centers. All Industry Members must have access to the SFTP and CAT Reporter Portal in order to report and receive information about file and record rejections, statistics about order reporting, and announcements. In order to use SFTP and CAT Reporter Portal, Industry Members must register with CAT prior to the beginning of Phase 2a. If an Industry Member is using one or more third parties for reporting, it must work closely with those organizations in the CAT testing environment to resolve any issues before it begins reporting to the CAT production environment. For additional information, refer to the CAT Reporting Technical Specifications for Industry Members.

3. Will Thesys CAT provide some type of software/workstation for Industry Members to transmit the required order data? added 11/15/18

Yes, Thesys CAT provides a CAT Reporter Portal that allows Industry Members to upload small files, as well as manually type and transmit the required order data. (This is only appropriate for Industry Members that will submit fewer than 500 order reports per day.) There are no other plans to provide Industry Members with software or a workstation to transmit the required data.

4. If a clearing firm enters into agreements with each of its correspondents to transmit data to CAT on behalf of the correspondents, is a separate Reporter ID required for each correspondent? added 11/15/18

Yes. Clearing firms that enter into agreements with their correspondents to transmit data to CAT on behalf of their correspondents are required to use the unique Reporter ID assigned to each correspondent.

5. Can order events for more than one CAT Reporter be submitted to CAT in a single file? added 11/15/18

No. A file may contain records for only one CAT Reporter ID.

6. Are back-up circuits required for reporting to CAT via SFTP? added 11/15/18

There is no requirement to install a back-up circuit. Several different scenarios may apply, as follows:
If a broker-dealer experiences a short-term outage, for instance an internal network goes down during the day and the broker-dealer is unable to transmit before the deadline, the broker-dealer should note the outage in its books and records and transmit as soon as possible. In addition, it is recommended that a case be opened with the CAT Help Desk so that there is a record of the outage.

7. Where can information on obtaining entitlement to CAT be found? added 11/15/18

For information on CAT Entitlement, please view the Industry Member Onboarding User Guide on www.catnmsplan.com.

8. What are the Web addresses used to transfer CAT data? added 11/15/18

It is currently under development, and will be provided once available.

9. Where can information on obtaining access to the private network for reporting to CAT be found?

Information regarding connectivity and the registration process will be provided in the Industry Member Onboarding User Guide, which will be published by 3/31/2019.

10. Can files be sent to CAT using SFTP via the Internet? added 11/15/18

CAT supports network access for reporting order events via VPN or direct connections. Once connected, files can be submitted via SFTP.

11. Who do I contact if I need to change the configuration of my connection to the private network? added 11/15/18

If you need technical assistance, contact the CAT Helpdesk at 1-833-228-7378.

12. Can records submitted via the CAT Web Portal be saved? added 11/15/18

Functionality to save a copy of records submitted via the CAT Reporter Portal is anticipated. Further details will be provided in Reporter Portal User Guide.

13. Where can the status of the CAT system be found? added 11/15/18

The CAT System status and other announcements will be presented on the Reporter Portal.

P. FEEDBACK AND ERROR CORRECTIONS

1. How can a CAT Reporter obtain information about its reporting metrics, including linkage statistics? added 11/15/18

Each CAT Reporter’s reporting metrics, including linkage statistics, will be available via the CAT Reporter Portal and via Feedback files.

2. What will happen if order information is submitted for a security that is not CAT reportable? added 11/15/18

Order Events for non-Eligible Securities will be rejected by CAT.

3. If one record in a file is rejected, will the whole file be rejected? added 11/15/18

No. Files are only rejected for errors in the basic file integrity checks. If an individual record is unacceptable, only that record will be rejected and require repair. See Section 7 in the CAT Reporting Technical Specifications for Industry Members for additional information on Feedback and Corrections.

4. When will rejections be available? added 11/15/18

Feedback, including acknowledgements and rejections, will be generated from each stage of processing. Order Events feedback will be provided as soon as the processing of each stage is completed. All feedback, including rejections, for files submitted by 8AM T+1 will be available no later than noon on T+1, where T is the CAT Trading Day. From a timing perspective, intra-firm processing occurs prior to inter-firm. More detailed information on timing of feedback will be made available as soon as possible.

5. What are the mechanisms for an Industry Member to correct a rejected order event? added 11/15/18

There are multiple ways to repair a rejected order event. The first way is to regenerate the repaired record, and package it in a repair file, and submit the new file and related metadata file to CAT. Events from different calendar days may not be commingled in one file. Industry Members may also use the CAT provided rejectFile, which pre-populates original rejected records, to repair a rejected order event. A third option is to make the repair via the Reporter Portal.

6. Can previously accepted records be corrected? added 11/15/18

Industry Members should submit a self-identified correction to CAT only if they discover a mistake, such as a data entry error, in an order event record that has already been submitted to CAT and been accepted by the system. Corrections should never be used to reflect a change requested by a customer. For example, if an order quantity is mistakenly reported to CAT as 100 rather than 1,000, the Industry Member should correct the error via a correction record. However, if the customer requests that an order quantity be changed from 100 to 1,000 shares, the Industry Member must instead generate an Order Modified Event Report. Correction records submitted to CAT after 8am on T+3, where T is the CAT Trading Day, will be marked as late.

7. Can previously accepted records be deleted? added 11/15/18

Industry Members should submit a self-identified deletion to CAT only if they discover that an order event record was mistakenly sent to CAT and accepted. For example, if an Industry Member mistakenly reports that an order was canceled when it was actually executed, a deletion should be submitted for the Order Canceled Report. Deletions transmitted to CAT after 8am on T+3, where T is the CAT Trading Day, will be marked as late.

8. For what reasons are files rejected by CAT? added 11/15/18

CAT files may be rejected if metadata files cannot be decrypted or if the metadata files do not meet the properties of the corresponding data file. Fields for which the metadata file and corresponding data files must be consistent include: Date, Submitter, Reporter, Encrypted Size, Encrypted Hash, Decryption, Compressed Hash and Data Hash.

9. For what reasons are records rejected by CAT? added 11/15/18

Individual records will be rejected if they do not meet the specific data type formats as laid out in the CAT Reporting Technical Specifications for Industry Members.

10. What is the deadline for correcting a rejected file? added 11/15/18

All rejected files must be corrected and resubmitted by 8 a.m. T+3.

11. Does CAT reject secondary events if the parent is not present? For example, if an Order Route is submitted and passes format validations, but the related New Order Event is not reported or rejected, will the Order Route automatically be rejected? added 11/15/18

No. The CAT system processes and validates each report individually and will not reject secondary events such as an Order Route because the related primary event was not reported. However, these instances may be flagged as Unlinked.

12. Can accepted data be viewed in CAT? added 11/15/18

No. Data that was submitted to and accepted by CAT cannot be viewed by the CAT Reporter. However, the feedback file does provide counts of records contained within each file so that firms can identify the number of events in an accepted or rejected file and/or whether an accepted file contains zero records. The CAT Web Portal and feedback files allow for the viewing of file status, reporting statistics, and rejected or unlinked events.

13. If a GTC limit order is executed several months after receipt of the order, will CAT reject the Trade Event? added 11/15/18

No. Limit orders with a Time in Force code of “GTC” or “GTD” are maintained in CAT for six years. Any order report related to one of these limit orders can be reported to CAT within that time period.

14. If a cancellation of an order is received after it has been executed, and an Industry Member submits an Order Canceled Event to CAT, will it be rejected? added 11/15/18

No. The Order Canceled Event will not be rejected from CAT.

15. What is the criteria for determining if a Reportable Event report is late and therefore, marked as such in a CAT Reporter’s reporting statistics? added 11/15/18
The reporting of data will be considered late if it is not reported by the deadlines established in the CAT NMS Plan. For example, Industry Members must report (1) Recorded Industry Member Data, as defined in the CAT NMS Plan, to the CAT by 8:00 a.m. ET on the Trading Day following the day the Industry Member records such data, and (2) Received Industry Member Data, as defined in the CAT NMS Plan, to the CAT by 8:00am ET on the Trading Day following the day the Industry Member receives such Received Industry Member Data. If the such data is not reported in accordance with those deadlines, it will be considered late.

Q. CUSTOMER AND ACCOUNT INFORMATION

1. What customer information must Industry Members report to the CAT?
The CAT NMS Plan currently requires Industry Members to provide Firm Designated IDs, Customer Account Information and Customer Identifying Information to the CAT.

As set forth in the CAT NMS Plan, a Firm Designated ID is a unique identifier for each trading account designated by Industry Members for purposes of providing data to the CAT, where each such identifier is unique among all identifiers from any given Industry Member for each business date.

Customer Account Information includes, but is not limited to:

  • Account number (except in certain circumstances);
  • Account type;
  • Customer type;
  • Date account opened; and
  • Large Trader identifier, if applicable.

    Customer Identifying Information means information of sufficient detail to identify a Customer, including, but not limited to, (a) with respect to individuals: name, address, date of birth, individual tax payer identification number (“ITIN”)/social security number (“SSN”), individual’s role in the account (e.g., primary holder, joint holder, guardian, trustee, person with the power of attorney); and (b) with respect to legal entities: name, address, Employer Identification Number (“EIN”)/Legal Entity Identifier (“LEI”) or other comparable common entity identifier, if applicable; provided, however, an Industry Member that has an LEI for a Customer must submit that Customer’s LEI in addition to other information of sufficient detail to identify a Customer.

    In light of security concerns, however, the Operating Committee is analyzing alternative approaches to providing Customer information.

  • 2. Are CAT Reporters required to report Customer-IDs to the CAT?
    No, the Participants obtained exemptive relief from the requirement in Rule 613 for a CAT Reporter to report the Customer-ID(s) for each Customer. Instead, the CAT NMS Plan requires Industry Members to report only the Firm Designated ID for each new order submitted to the CAT, rather than the Customer-ID, and the Plan Processor would associate the specific Customers and their Customer-IDs with individual order events based on the reported Firm Designated ID. The Firm Designated ID is a unique identifier for each trading account designated by Industry Members for purposes of providing data to the CAT, where each such identifier is unique among all identifiers from any given Industry Member for each business date.

    3. When must Industry Members submit Customer information to the CAT?
    Under the CAT NMS Plan, each Industry Member must submit an initial set of Customer information for Active Accounts to the CAT upon the Industry Member’s commencement of reporting to the CAT. Each Industry Member must submit to the CAT any updates, additions or other changes to the Customer information on a daily basis for all Active Accounts. In addition, on a periodic basis, each Industry Member will be required to submit to the CAT a complete set of all Customer information.

    In light of security concerns, however, the Operating Committee is analyzing alternative approaches to providing Customer information.

    4. Are Industry Members required to report a Legal Entity Identifier (LEI) for their Customers to the CAT?
    An Industry Member is required to report an LEI for a Customer that is a legal entity to the CAT if the Industry Member has an LEI for a Customer. The CAT NMS Plan does not require a Customer to obtain an LEI if it does not have one, it does not require a Customer to provide an LEI to an Industry Member; and it does not require the Industry Member to request an LEI of its Customer.

    5. What is the definition of customer under the CAT NMS Plan? Who is the customer for purposes of the CAT: the end customer, the introducing broker or the clearing broker?
    The CAT NMS Plan defines a “Customer” as (a) the account holder(s) of the account at a registered broker-dealer originating the order; and (b) any person from whom the broker-dealer is authorized to accept trading instructions for such account, if different from the account holder(s). This is the same definition as set forth in Rule 613(j)(3).

    R. CLOCK SYNCHRONIZATION

    1. What are the CAT clock synchronization standards for CAT Reporters?
    The CAT NMS Plan requires Industry Members to synchronize their Business Clocks at a minimum to within 50 milliseconds of the time maintained by the National Institute of Standards (NIST), with the exception of Business Clocks used solely for Manual Order Events or the time of allocation on Allocation Reports, which must be synchronized to within one second of the NIST clock.

    The CAT NMS Plan requires Participants to synchronize their Business Clocks at a minimum to within 100 microseconds of the time maintained by the NIST, consistent with industry standards, with the exception of Business Clocks used solely for Manual Order Events, which must be synchronized to within one second of the NIST clock.

    2. If I am an agency broker-dealer and I send my orders through a third-party service provider’s system (e.g., Bloomberg), what clock synchronization compliance obligations do I have with regard to the third-party service provider’s clocks and my own clocks? Do I need to do anything with regard to the internal systems (e.g., internal PCs or servers) or clocks within in my own firm to satisfy the clock synchronization requirements?
    An Industry Member must satisfy the CAT clock synchronization requirements for all of its Business Clocks. Business Clocks are defined as clocks used to record the date and time of any Reportable Event required to be reported under SEC Rule 613. If an Industry Member relies on a third-party service provider’s clocks to record the date and time of any of the Industry Member’s Reportable Events required to be reported under SEC Rule 613, such clocks are considered to be the Industry Member’s Business Clocks for purposes of the CAT clock synchronization requirements. Accordingly, the Industry Member has the ultimate responsibility for ensuring that such Business Clocks satisfy the CAT clock synchronization requirements. Industry Members also must satisfy the documentation, certification and violation reporting requirements related to clock synchronization as set forth in the Compliance Rule with regard to such third-party service providers’ clocks. Industry Members will need to obtain information regarding clock synchronization procedures from their third-party service providers to satisfy these requirements.

    In addition, to the extent that the Industry Member has any Business Clocks other than those of the third-party service provider, then the Industry Member must satisfy the CAT clock synchronization requirements, as well as the documentation, certification and violation reporting requirements related to clock synchronization set forth in the Compliance Rule, with regard to those Business Clocks.

    3. Does the CAT NMS Plan allow Industry Members to continue to write the time on order tickets or are Industry Members required to purchase mechanical time clocks? added 11/15/18
    The CAT NMS Plan does not disallow the use of manually written timestamps provided the clock referenced is synchronized properly.

    4. When during the day should clocks be synchronized? added 11/15/18
    Computer system and mechanical clocks must be synchronized every business day before market open. To maintain clock synchronization, clocks should be checked against the NIST atomic clock and re-synchronized, if necessary, throughout the day. Industry Members must document and maintain their clock synchronization procedures.

    5. What clock synchronization procedures are we required to comply with the CAT NMS Plan? added 11/15/18
    All Industry Members that have Business Clocks that are subject to the clock synchronization requirements must document and maintain their synchronization procedures and keep a log of the times when they synchronize their Business Clocks and the results of the synchronization process. The Participants expect that each Industry Member will synchronize its Business Clocks every business day before market open, and check synchronization at pre-determined intervals throughout the business day, to reasonably ensure that Business Clocks maintain synchronization. The Participants also expect that each Industry Member’s synchronization log will document whenever a Business Clock fails to be within the applicable tolerance of the time maintained by NIST.

    6. Must broker-dealers maintain a log of the times clocks are synchronized? added 11/15/18
    Yes. Firms required to synchronize their clocks according to the CAT NMS Plan should keep a log of the times when they synchronize their clocks and the results of the synchronization process. This log should be maintained on-site, and it should include notice of any time the clock drifts more than allowed by the CAT NMS Plan.

    S. SECURITY

    1. What steps are being taken to ensure that the CAT is secure given heightened cybersecurity concerns?
    The CAT NMS Plan requires the Plan Processor, subject to the oversight of the Operating Committee, to develop a comprehensive information security program that addresses the security and confidentiality of all information accessible from the CAT and the operational risks associated with accessing the CAT. Appendix D of the CAT NMS Plan sets forth minimum data security requirements for the CAT that the Plan Processor must meet. In addition, as required by the Plan, the Plan Processor has designated a Chief Information Security Officer (CISO), who is responsible for, among other things, creating and enforcing appropriate policies, procedures, and control structures regarding data security.

    2. Will the CAT be required to satisfy the requirements of Reg SCI?
    Yes, the CAT is considered an SCI System and it must be operated in compliance with the requirements in Reg SCI applicable to an SCI System. In addition, the CAT NMS Plan requires the Technical Specifications to satisfy all applicable regulations regarding database security including provisions of Reg SCI.

    3. How will CAT ensure the security of the data? added 11/15/18

    The CAT utilizes several security mechanisms to keep data secure both in transit and at rest, including requiring User IDs and passwords and multi-factor authentication when accessing SFTP and Web Portal and SSL PGP, OpenPGP and GPG encryption.
    CAT Submitters that transmit files on behalf of other firms will be allowed to view status files, rejected feedback files, and statistics for all files that they submitted. Industry Members that submit through third-party entities will be allowed to only access their own status files, rejected records, and statistics.