📈Amendment to National Market System Plan Approved by SEC
Joint Industry Plan; Order Approving an Amendment to the National Market System Plan Governing the Consolidated Audit Trail, as Modified by the Commission, Regarding the Reporting of Certain Verbal Activity, Floor and Upstairs Activity
Summary
The SEC has approved an amendment to the National Market System Plan governing the Consolidated Audit Trail, modifying existing requirements for reporting verbal and electronic trading activities. This amendment aims to alleviate compliance burdens on firms while striving to maintain effective regulatory oversight in the financial markets. The changes are expected to reshape operational practices for industry participants significantly.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The regulation involves significant compliance and reporting requirements related to the amended CAT NMS Plan. Businesses must adapt to new reporting standards for both verbal and electronic communication in trading, which entails re-evaluating operational costs and technological systems to ensure compliance. This could result in substantial financial impacts due to anticipated hiring and technology upgrades, projected around $4.4 billion annually.