pc
nid 92015
Apr 16, 2026
ggallwey@vixio.com
US Track 3
U.S. Securities and Exchange Commission
financial services
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1603 charsUnited States Securities and Exchange Commission Seeks Public Comment on Consolidated Audit Trail Review
On April 16, 2026, the Securities and Exchange Commission (SEC) issued a concept release soliciting public comment on a comprehensive review of the Consolidated Audit Trail (CAT) and other audit trails and related data sources used in regulating U.S. securities markets.
The concept release invites comment on multiple foundational aspects of the CAT, including funding and cost management, regulatory purpose, structure and governance, design and scope, and cybersecurity and data privacy considerations. The SEC is also seeking input on balancing privacy and confidentiality protections, civil liberties safeguards, and regulatory requirements. SEC Chairman Paul S. Atkins noted that over the past year, the Commission has reduced the CAT's projected annual operating costs by more than $100 million and permanently eliminated the reporting of personal identifiable information to the CAT through exemptive relief and approved amendments to the national market system plan. However, the Chairman stated the Commission must pursue further reforms to address foundational aspects of the CAT. Jamie Selway, Director of the SEC's Division of Trading and Markets, indicated the Division anticipates the concept release will generate meaningful dialogue with market participants and stakeholders.
The SEC welcomes comment on possible regulatory responses and any associated costs, burdens, or benefits. The public comment period will remain open for 60 days following publication of the concept release in the Federal Register. Commenters can submit responses through the SEC's official submission portal.
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1644 charsUnited States Securities and Exchange Commission Seeks Public Comment on Consolidated Audit Trail Review
On April 16, 2026, the U.S. Securities and Exchange Commission issued a concept release seeking public comment as part of a comprehensive review of the Consolidated Audit Trail (CAT) and other audit trails and market data sources used in the oversight of U.S. securities markets.
The CAT was introduced to improve regulators’ ability to monitor cross-market trading activity by providing accurate, complete, and timely data across trading venues, addressing limitations in earlier audit trail systems.
The review reflects developments since the CAT’s approval in 2016, including its full implementation, the retirement of legacy systems such as the Order Audit Trail System (OATS), and significantly higher-than-expected operating costs driven by increased market activity.
The SEC is seeking feedback on a broad range of issues, including the CAT’s funding model, regulatory purpose, governance structure, scope and design, and the cybersecurity and data privacy risks associated with large-scale market data collection. The consultation also considers how to balance regulatory surveillance and data collection needs with privacy, confidentiality, and civil liberties concerns.
The concept release does not introduce new regulatory requirements but signals a potential reassessment of market surveillance infrastructure and data governance frameworks. The SEC is inviting comment on potential regulatory responses, including the costs, benefits, and operational impacts of future changes. Comments can be submitted through the SEC's website .
The comment period will remain open for 60 days following publication in the Federal Register.