The Securities and Exchange Commission (SEC) granted “exemptive relief “to the self-regulatory organizations (SROs) that are essentially underwriting the operating costs of the consolidated audit trail (CAT). The ambitious big data CAT system got its start in 2012 in the wake of the Flash Crash of 2010. That event spurred demand for a U.S. securities… Read More >>
tZERO Petitions CFTC for DCO & DCM Status
Blockchain fintech provider tZERO Group is petitioning the U.S. derivatives regulator, the Commodity Futures Trading Commission (CFTC), to become both a Derivatives Clearing Organization (DCO) and a Designated Contract Market (DCM). The move aims to position tZERO as a one-stop shop for compliant issuance, regulatory oversight, trading, and clearing within the digital asset ecosystem. A… Read More >>
FINRA Criticized for $50M Rebate to Its Members
The Board of Governors of the Financial Industry Regulatory Authority (FINRA) has been criticized for approving a $50 million rebate to FINRA members rather than distributing the windfall to investors who have won arbitration awards against members of the self-regulatory organization (SRO) but have not been paid. The organization crying foul is the Public Investors… Read More >>
U.S. Regulators Warn Against Potential Cyber Attacks
As a fragile ceasefire pauses the Israel-Iran conflict, U.S. regulators and financial services industry leaders are sounding the alarm over an increased risk of cyberattacks targeting U.S. financial institutions. The warning comes as President Donald Trump — speaking at a White House press conference on June 27 — declined to rule out a second round… Read More >>
CAT System Comes Under New Scrutiny
The Consolidated Audit Trail (CAT) had a controversial path to becoming a key tool for U.S. market regulators in their fight against the manipulation of financial markets and other abuses that leave an electronic trail. However, it appears that the CAT surveillance system may be on a challenging path again, as key U.S. Senators, some… Read More >>
LDA Technologies Device Targets Data & Record-Keeping Woes
LDA Technologies, a developer of advanced ultra-low latency integrated circuits and network solutions for capital markets, has launched NeoTap X, a high-performance hardware solution that can be applied to trade monitoring, compliance reporting, advanced analytics, and optimizing network performance, officials say. The timestamping and tap aggregation features of NeoTap X are intended to help firms… Read More >>
SEC Quietly Approves Cost Savings for the CAT System
It’s been a while since I wrote about the ambitious and controversial big data, U.S. securities transaction monitoring project known as the Consolidated Audit Trail (CAT), which has been helping regulators FINRA and the Securities and Exchange Commission (SEC) monitor U.S. equity and options markets, exchanges, participants, transactions, and more. CAT issues have receded as… Read More >>
ACA Group Acquires FINOP Consulting
Governance, risk, and compliance (GRC) solutions provider ACA Group hopes to bolster the FINRA and SEC compliance services it offers to broker-dealers via the acquisition of FINOP Consulting, an outsourcer for broker-dealers, officials say. Officials declined to provide the financial terms of the acquisition. FINOP Consulting offers financial operations services “that ensure a broker-dealer’s financial… Read More >>
Firms Need to Prepare for Sec Lending Reporting
(Last year, the SEC approved Rule 10c-1a, intended to bring new transparency to securities lending transactions via reporting and dissemination requirements. Earlier this year, the Financial Industry Regulatory Authority (FINRA) proposed a new facility allowing covered securities loan transactions to be reported to the self-regulatory organization (SRO) for U.S. broker-dealers. The proposed system, the Securities… Read More >>
FINRA Explores Remote Inspections via Pilot Program
Nearly one-quarter or 22 percent of FINRA member firms have volunteered to participate in a pilot program that would allow them to complete their inspection obligations “without an on-site visit” from a FINRA official, according to the self-regulatory organization (SRO) for U.S. broker-dealers. FINRA notes that 741 firms are participating in the initial pilot, and… Read More >>
