FAQs

To date, the Participants have paid the full cost of the creation, implementation and maintenance of the CAT since 2012. The CAT NMS Plan, however, contemplates a funding model in which both Participants and Industry Members contribute to the funding of the CAT. On September 6, 2023, the Commission approved an amendment to the CAT NMS Plan, which established a funding model (“CAT Funding Model”) that allocates CAT costs through the use of executed equivalent share transaction-based fees that will be assessed by Consolidated Audit Trail, LLC (“CATLLC”). (See FAQ V5 for definition of “executed equivalent shares.”)

The Participants will separately file fee filings pursuant to Section 19(b) of the Exchange Act to implement the fee rates for one or more Historical CAT Assessments and for Prospective CAT Fees to be charged by CATLLC to the CAT Executing Brokers.

CAT Reporters who are CAT Executing Brokers that have CAT billable trading activity will receive CAT invoices. (See FAQ V3 for the definition of “CAT Executing Broker” and FAQs V4 and V5 for a discussion of CAT billable activity). Clearing firms or other firms that are not also CAT Executing Brokers will not receive CAT invoices.

The CAT NMS Plan definition of “CAT Executing Broker” may differ from the definition of executing broker used in other SRO rules or other contexts.

CAT Executing Broker is defined in Section 1.1 of the CAT NMS Plan.

For a transaction in an Eligible Security that is executed on an exchange, the CAT Executing Brokers are the Industry Member identified as being responsible for the order on the buy-side of the transaction and the Industry Member responsible for the sell-side of the transaction in the equity order trade event and option trade event in the CAT Data submitted to the CAT by the relevant exchange.

For a transaction in an Eligible Security that is executed otherwise than on an exchange and required to be reported to an equity trade reporting facility of FINRA, the CAT Executing Brokers are the Industry Member identified as the executing broker and the Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event in the CAT Data submitted to the CAT by FINRA. However, in those circumstances where there is a non-Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event or no contra-side executing broker is identified in the TRF/ORF/ADF transaction data event, then the Industry Member identified as the executing broker in the TRF/ORF/ADF transaction data event would be treated as CAT Executing Broker for the Buyer and for the Seller.

The identity of the CAT Executing Broker will be determined from transaction reports reported to the CAT by the exchanges or FINRA. 

• Under the Participant Technical Specifications, for transactions occurring on a Participant exchange, there is a field for the exchange to report the market participant identifier (“MPID”) of “the member firm that is responsible for the order on this side of the trade.” The Industry Members identified in these fields for the transaction reports are the CAT Executing Brokers for transactions executed on an exchange. 
   
• FINRA is required to report the MPID of the executing party as well as the MPID of the contra-side executing party. The Industry Members identified in these two fields for the tape-reported transaction reports are the CAT Executing Brokers for over-the-counter transactions. Non-tape reports (e.g., regulatory reports or clearing reports), are not used for CAT billing. For more details regarding CAT fees related to transactions on Alternative Trading Systems, see FAQ V25, and for more details on CAT fees related to transactions involving a non-FINRA member, see FAQ V26.

A CAT Executing Broker’s CAT fee is calculated by multiplying the number of the CAT Executing Broker’s executed equivalent shares traded in Eligible Securities by the applicable fee rate. There will be separate fee rates related to one or more Historical CAT Assessments and to CAT Fees related to Prospective CAT Costs. Fee rates are calculated as set forth in Section 11.3 of the CAT NMS Plan.

CAT invoices will contain separate line items for fees related to each Historical CAT Assessment and CAT Fees related to Prospective CAT Costs. Initially, CATLLC will collect a fee related to certain Historical CAT Costs, referred to as Historical CAT Assessment 1. Additional fees related to other Historical CAT Costs and Prospective CAT Costs are planned to be introduced at a later time. As a result, the initial CAT invoices will only include fees related to Historical CAT Assessment 1.
 

An executed equivalent share is defined as follows:

•    1 share in an NMS Stock = 1 executed equivalent share
•    1 share in an OTC Equity Security = 0.01 executed equivalent share
•    1 Listed Option contract = 100 executed equivalent shares (or, if different, the applicable contract multiplier)

For additional information regarding fractional shares, please see FAQ V23.
 

The CAT Funding Model contemplates two categories of CAT fees: (1) CAT fees assessed by CATLLC to CAT Executing Brokers to recover a portion of historical CAT costs previously paid to CATLLC by the participants (referred to as “Historical CAT Assessment” fees), and (2) CAT fees assessed by CATLLC to CAT Executing Brokers and Participants to fund prospective CAT costs (referred to as “Prospective CAT Costs” fees). Fee rates will be determined by CATLLC and will be subject to the Plan Participants filing related fee filings to implement the given fee rate on behalf of CATLLC (subject to applicable SEC fee filing requirements). [Fee rates also will be announced via CAT Alert].

Initially, CATLLC will implement a fee related to certain Historical CAT Costs, referred to as Historical CAT Assessment 1. Additional fees related to other Historical CAT Costs and Prospective CAT Costs are planned to be introduced at a later time. As a result, the initial CAT invoices will only include fees related to Historical CAT Assessment 1.
 

The Historical Fee Rate for a Historical CAT Assessment will be calculated by dividing the applicable Historical CAT Costs by the projected total executed equivalent share volume for all transactions in Eligible Securities for the projected Historical Recovery Period, which may range from two to five years. The fee rate for each Historical CAT Assessment will remain static throughout the actual recovery period. Note that the projected Historical Recovery Period is only used to calculate the given Historical Fee Rate; the actual recovery period may be shorter or longer depending on actual trading volumes. A Historical CAT Assessment will remain in effect until the full amount of the relevant Historical CAT Costs is collected.

For CAT Fees related to Prospective CAT Costs, the Fee Rate will be set at the beginning of the year and will be calculated by dividing budgeted CAT costs by the projected total executed equivalent share volume of all transactions in Eligible Securities for that year. The projected total executed equivalent share volume would be based on the total executed equivalent share volume of transactions in Eligible Securities from the prior twelve months. The Fee Rate will be evaluated during the year and will be adjusted mid-year by dividing the budgeted CAT costs for the remainder of the year by the projected total executed equivalent share volume of all transactions in Eligible Securities for the remainder of the year.

CAT invoices include adjustments for cancellations and corrections related to CAT Fees for transactions billed in the prior three months. Adjustments include late reported (as-of) trades (reflected as debits) and trade cancels, busts and reversals (reflected as credits) as applicable.

While still subject to CATLLC approval and applicable fee filings being submitted by the Participants to implement fees on behalf of CATLLC (subject to applicable SEC fee filing requirements), it is currently anticipated that the initial Historical CAT Assessment, referred to as Historical CAT Assessment 1, will be assessed starting with trades occurring no earlier than November 1, 2023. Invoices will be delivered on the 25th of the following month. In the event the 25th is a weekend or holiday, invoices will be delivered on the next business day. Assuming a November 1, 2023 effective date, the first invoices would be issued on December 26, 2023, based on transactions in Eligible Securities in November 2023. For additional information, please refer to [CAT Alert 2023-02].

An Industry Member will receive an invoice if it has any CAT billable activity. However, if the total CAT fee for a CAT Executing Broker for a given month is less than $0.01, an invoice will be generated, but the invoice will reflect a total fee of $0.00.

CAT invoices will be published to the CAT Reporter Portal by no later than the 30th day of the following month and are due to be paid by CAT Reporters within 30 calendar days of the date of the invoice. CAT Reporters will receive email notifications that invoices are available on the CAT Reporter Portal.

CAT invoices can be paid via check, ACH or bank wire. Mailing, overnight, ACH and wire instructions are provided on each CAT invoice, and also outlined below. All payment types must include the invoice number. No payments can be tendered prior to issuance of the first invoice. See FAQ V10 for more information on the first invoice. Credit cards and any other forms of payment will not be accepted.

For check payments via U.S. mail delivery:
CAT LLC 
PO Box 411583
Boston, MA 02241-1583
Reference on check: Invoice Number

Note: This address will not accept courier or overnight deliveries

For check payments via overnight deliveries:
Bank of America Lockbox Services
CAT LLC-411583
MA5-527-02-07
2 Morrissey Blvd
Dorchester, MA 02125
Reference on check: Invoice Number

For ACH payments:
Bank Name: Bank of America
ABA#: 054001204
Credit To: CAT LLC
Account: 226005799417
Reference: Invoice Number

For wire payments:
Bank Name: Bank of America
ABA#:  026009593
Credit To: CAT LLC
Account: 226005799417
Reference: Invoice Number

Provide the following phone number if one is required for the recipient: (888) 696-3348.

CAT invoice balance information is updated once daily on the CAT Reporter Portal. If the payment does not post within 48 hours, please contact the FINRA CAT Help Desk at [email protected] or (888) 696-3348.

Questions related to CAT invoices should be directed to the FINRA CAT Helpdesk at [email protected] or (888) 696-3348.

Monthly trade details related to CAT fees are delivered via SFTP and the CAT Reporter Portal.

CAT invoices can be accessed on the CAT Reporter Portal via the “Invoice” icon on the blue navigation panel. CAT invoices will only be published to the CAT Reporter Portal and no paper invoices will be mailed or sent via electronic means. For more information, please see the CAT Reporter Portal User Guide. CAT invoices can only be viewed by properly entitled users. Users must contact their Super Account Administrator to add/edit entitlements. For more information, please see the Industry Member Onboarding Guide. If a firm has no billable trades for a particular month, no invoice will be issued.

Billing contact information can be updated in the CAT Contact Management System via the CAT Reporter Portal. For more information, please see the CAT Reporter Portal User Guide.

If a firm does not provide billing contact information, the billing contact will be populated with the Primary Contact listed on the CAT Registration Form. The firm may update this contact at any time via the CAT Reporter Portal.

Notification emails will be sent to subscribers of Consolidated Audit Trail (CAT) updates and to CAT Billing Contacts listed in the CAT Contact Management System when invoices are published to the CAT Reporter Portal. CAT invoices will not be sent via email or any other means.

Invoice balance information will be updated daily and can be found on the CAT Reporter Portal. Separate receipts will not be issued for payments of CAT invoices.

To request the W-9, please contact the FINRA CAT Helpdesk at [email protected] or (888) 696-3348.

As described in the funding model amendment that was approved by the SEC on September 6, 2023, CAT fees are charged based on the data contained in transaction reports, which do not provide for fractional quantities.  As a result, CAT fees cannot be calculated using fractional shares or fractional share components of executed orders at this time. Accordingly, fractional shares will be billed based on the quantity reflected in the transaction reports.  

A firm may file a fee dispute by submitting a written application to the FINRA CAT Helpdesk at [email protected] within 15 business days after being notified of such disputed CAT fees. The application is required to identify the disputed CAT fees, state the specific reasons why the applicant takes exception to such CAT fees, and set forth the relief sought. FINRA CAT will forward all fee dispute applications to CATLLC. For more information on fee dispute resolution procedures, please see the “CAT Compliance Rule” provisions on fee dispute resolution that are set out in each of the Participants’ rulebooks (e.g. FINRA Rule 6898).

The definition of a “CAT Executing Broker” would determine the CAT Executing Brokers for transactions executed on an ATS. Specifically, if an ATS is identified as the executing party and/or the contra-side executing party in the TRF/ORF/ADF Transaction Data Event, then the ATS would be a CAT Executing Broker for purposes of the Funding Proposal. If the ATS is identified as the executing party for the buyer in such transaction reports, then the ATS would be the CAT Executing Broker for the Buyer, and if the ATS is identified as the executing party for the seller in such transaction reports, then the ATS would be the CAT Executing Broker for the Seller. An ATS also could be identified as both the CAT Executing Broker for the Buyer and the CAT Executing Broker for the Seller. ATSs would determine the executing party and the contra-side executing party reported to FINRA’s equity trading facilities in accordance with the transaction reporting requirements for FINRA’s equity trading facilities.
 

The definition of a “CAT Executing Broker” would determine the CAT Executing Brokers in those cases in which there are non-Industry Members on transactions reports. The definition of “CAT Executing Broker” states that, in those circumstances where there is a non-Industry Member identified as the contra-side executing broker in the TRF/ORF/ADF transaction data event or no contra-side executing broker is identified in the TRF/ORF/ADF transaction data event, then the Industry Member identified as the executing broker in the TRF/ORF/ADF transaction data event would be treated as CAT Executing Broker for the Buyer and for the Seller.