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Read. Follow. Verify.Senate Oversight Hearing: The Consolidated Audit Trail (CAT)
Record date · January 1, 2020
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What This Bill Does
This Senate Banking Committee hearing reviewed the progress and implementation status of the , a system designed to track securities orders across U.S. markets. Senators and industry experts discussed the project's history, cost concerns, and the importance of protecting sensitive investor data.
The CAT is a massive database tracking every stock market order in the U.S. to prevent market manipulation, and this hearing addresses ongoing concerns regarding its multi-billion dollar cost, data security, and the protection of .
Who It Affects
Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.
Individual Investors
Their personally identifiable information (PII) is collected and stored within the CAT database.
Financial Industry Regulatory Authority (FINRA)
A subsidiary of FINRA was selected to serve as the plan processor for the CAT system.
Securities and Exchange Commission (SEC)
The agency responsible for the oversight and implementation of the CAT system.
Key Facts
- The Consolidated Audit Trail (CAT) was proposed by the SEC in 2010 following the 'flash crash' to track securities orders from origination to execution.
- The SEC initially estimated the CAT would cost $4 billion to launch and $2.1 billion in annual maintenance.
- The system is designed to track the full life cycle of a securities order, including routing, cancellation, modification, and execution.
- The project has faced multiple challenges and delays over its nine-year development period.
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- The current version of the CAT aims to prioritize data accuracy over real-time reporting to reduce costs.
- FINRA CAT LLC, a subsidiary of FINRA, was selected as the plan processor for the system.
- Congressional concerns focus on the total cost of the build, the volume of data collected, data access protocols, and the security of personally identifiable information (PII).
Frequently Asked Questions
What is the Consolidated Audit Trail (CAT)?
Why are lawmakers concerned about the CAT?
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News Coverage
Follow the record
Votes, people, money & the original sourceFull breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Shift in Data Strategy
The project moved from a requirement for real-time data to a preference for slightly delayed but more accurate data to manage costs.
Connected Entities
Sources
www.govinfo.gov
Analysis Score
0–100- Significance85How much this matters to a regular citizen
- Controversy40Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz20Current news / social attention level
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