The Securities and Exchange Commission on Thursday published for comment a plan by the Financial Industry Regulatory Authority to update current rules to reflect FINRA’s new subsidiary, FINRA CAT LLC, which will develop and maintain the Consolidated Audit Trail.
FINRA CAT was created after FINRA was chosen as the new plan processor for CAT on Feb. 27.
On Feb. 1, CAT NMS LLC confirmed that it would be transitioning the CAT project to a new plan processor, and on Feb. 27, announced that it had selected FINRA.
As FINRA’s notice states, in its capacity as plan processor, FINRA is responsible for the development and operation of the CAT in accordance with the terms of the plan.
In addition to serving in its capacity as plan processor of the CAT, FINRA is required to fulfill its obligations as a participant of the plan.
“To that end, FINRA CAT LLC will further FINRA’s compliance with its regulatory obligations under SEC Rule 613 with respect to the creation, operation and maintenance of a central repository.”