WASHINGTON, April 16 (Reuters) – The U.S. Securities and Exchange Commission said on Thursday it is seeking public comment on whether it should comprehensively review the so-called Consolidated Audit Trail (CAT), potentially re-opening a decade-long dispute over the trading database.
The SEC said it would seek feedback on how the CAT is funded, its purpose, structure, governance, design, scope and cybersecurity concerns, among other issues, in a move that could give industry opponents another opportunity to kill the project.
The SEC mandated the CAT’s creation in 2012 in response to the “flash crash” of 2010, when major Wall Street indexes temporarily erased nearly $1 trillion in market value in a matter of minutes. Officials say the database allows regulators to spot market manipulation and have cited its data in enforcement actions.
But the CAT has long been mired in controversy, delays and litigation, with brokers arguing the project is unnecessarily burdensome and costly, and puts personal data at risk from potential cybersecurity hacks or lapses.
(Editing by Daphne Psaledakis. Writing by Michelle Price. Editing by Mark Potter)
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