Finra Cat Reporting Agreement

The first deadline for the release of data to the CTU was November 15, 2017, when the SROs requested discharge. Although they were rejected by President Jay Clayton, there were no reports for an additional year. Although in January, Thesys told IFLR Practice Insight that the first phases of reporting after the start of the dementia plan were progressing as expected and that accuracy and safety remained a high priority, they were soon replaced by the SEC, which reassigned the task to Finra. “Some have never signed and never signed cat report agreements. A few of them signed an agreement on CTU`s reports, but later withdrew it in support of the SIFMA initiative. There are others who have already started reporting and have signed agreements, but who support the initiative,” he said. The first phase of the CTU reports officially began on June 22, 2020. These include stock reports for large and small brokers who are currently reporting to the finras audit system (OATS), the system that almost replaces CAT. On July 20 of this year, the first option report for major broker traders will begin, and on December 13 will begin full coverage of stocks and options for all brokers. The CTU will be fully operational by July 2021. SIFMA had filed a Section 19 (d) application with the Securities and Exchange Commission (SEC) following feedback from its members indicating that some of the conditions in the CTU Reporters Agreement were not appropriate. All industry members must sign the CAT Journalist Agreement to access the system for testing, certification and production reports.

“THE CAT is a completely different animal. It contains all trading data for stocks and options. These include customer data and the lifecycle of an order,” says Ellen Greene, general manager of equity and options market structure at SIFMA. This type of pressure probably overshadowed the agreement in one way or another. As part of the comparison, the SROs agreed to remove the specific language from the CTU deferre agreement, which limits the OAR`s liability for a breach of the database, and also agreed not to impose a restriction on the language of responsibility in the deferring agreement without first proposing a rule and going through the official notification procedure. , comments and authorization with the SEC. “I think everyone is concerned that companies have a legal obligation to enter customer-identifying data into CAT,” Campbell added.