The House passed by voice vote on Monday bipartisan legislation to require the Securities and Exchange Commission and the Financial Industry Regulatory Authority to safeguard data provided on the Consolidated Audit Trail (CAT), which would track market trading activity.
The bill, the Market Data Protection Act of 2017, requires the SEC, which developed the CAT, as well as FINRA, to consult with the SEC’s chief economist and develop internal risk control mechanisms to safeguard and govern the storage of market data, all market data sharing agreements, and all academic research using market data available via CAT.
The SEC approved last November a national market system (NMS) plan to create a single, comprehensive database known as CAT to enable regulators to more efficiently and thoroughly track all trading activity in the U.S. equity and options markets.
The Wall Street Journal reported Friday that U.S. exchanges planned to seek a “last-minute delay in the launch” of CAT, which was scheduled to be released Wednesday. The SEC declined to comment on whether it had received such a request.