SROs Invite New Members to the CAT Development Advisory Group

SROs Invite New Members to the CAT Development Advisory Group

The national securities exchanges and FINRA (collectively the SROs) are pleased to announce a request for new members to the Development Advisory Group to advise the SROs in creating and implementing a consolidated audit trail (CAT). The role of the CAT Development Advisory Group is to advise the SROs on various aspects of the CAT including impact upon CAT participant firms and the broader industry.

The Development Advisory Group sessions have convened bi-weekly on specific CAT-related topics. Going forward, the SROs will look to the Development Advisory Group for input on, among other things, the technical and operational solutions that will be included in the NMS Plan to be submitted to the Securities and Exchange Commission by the SROs pursuant to Rule 613. The Development Advisory Group will continue to serve in an advisory capacity only. Each participating firm or organization will be able to send one representative to the Development Advisory Group.

The SROs encourage broker-dealers and firms of all sizes to submit requests to join the CAT Development Advisory Group by sending an email to feedback@catnmsplan.com no later than Friday, April 11, 2014. The SROs will select Development Advisory Group participants from a range of business and operating models in order to obtain a diversity of industry input into the development of the CAT. Industry vendors that transmit or report transaction data on behalf of broker-dealers are also encouraged to submit requests to participate in the Development Advisory Group. Firms submitting a Bid in response to the RFP will not be considered for Development Advisory Group membership.

When submitting a request to join, please include the following information, where applicable:

  • Firm name
  • Number of registered representatives
  • Approximate number of retail customer accounts
  • Approximate number of institutional customer accounts
  • Is the firm approved by a national securities exchange to: (a) effect transactions on the trading floor of such exchange as a specialist, market maker or floor broker; or (b) act as an institutional broker on such exchange?
  • Does the firm have proprietary trading operations?
  • Is the firm a clearing or self-clearing firm?
  • Does the firm transmit or report transaction data on behalf of other broker-dealers?
  • The SROs will select organizations to serve as members of the group based on the SROs’ obligations under Rule 613 and with the goal of optimizing effective input from the industry on the development of the CAT. Please note that the CAT Development Advisory Group is not related to the Advisory Committee mandated by Rule 613. The Advisory Committee will be formed once the NMS Plan is in effect. Selection to the Development Advisory Group is not indicative of selection to the Advisory Committee.

    Participation in the Development Advisory Group may require a significant time commitment, including regular participation in meetings and review of associated materials. The Development Advisory Group sessions will be conducted in person and via conference call. In the event of an in-person session, Development Advisory Group participants should not expect the SROs to reimburse expenses associated with travel.