
By Ralph Magee
Subscribe to our original industry insightsFINRA continues to identify the Consolidated Audit Trail (“CAT”) as an ongoing key area of risk in its Annual Report. It should come as no surprise that FINRA is keeping a close eye on the final phased implementation of CAT, which has been delayed until March 17, 2023. In this year’s report, specifically for CAT, FINRA has added bullets related to Self-Reporting when a firm identifies inaccurate reports, submission of late data, and the omission of reportable events. Also added is an emphasis on ensuring that firms are conducting periodic reviews of their data as well as of their CAT Compliance Metrics.
The report reminds firms of their Rapid Remediate Review Process and provides a comprehensive list of recent findings. Firms should take advantage of this information and evaluate their surveillance program to ensure it is adequately mitigating these risks. This year, FINRA also provides additional information regarding Effective Practices that firms should be using:
Oyster Consulting’s proprietary Consolidated Audit Trail reporting software consolidates CAT reporting events, error analysis and validation data into a central program. The CAT Application then will identify errors, linkage and gaps between vendor data and CAT reported data. Our application also includes a CAIS module that can be utilized by firms who do not use the CAT Application for monitoring and evidencing their CAT reporting. This module provides our clients with a seasoned and proven comprehensive surveillance program for all of CAT.
Our consultants use their deep regulatory experience in trade reporting to help firms achieve their CAT reporting obligations, and get the most out of their CAT reporting investment. Take advantage of our expertise and software to ensure your reporting meets regulatory requirements.
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