SEC Implements Funding Changes for Audit-Trail System, Shifting Costs to Brokers and Investors

The Securities and Exchange Commission (SEC) has approved an amendment to the National Market System Plan governing the Consolidated Audit Trail (CAT), adopting a revised funding model called the "Executed Share Model." This amendment establishes a fee schedule for CAT fees for self-regulatory organizations participating in the CAT NMS Plan. The approved framework allows plan participants to recover costs associated with building and operating the CAT, including the allocation of costs among participants and members of national securities exchanges or associations. The participants will submit filings to impose fees on industry members, with details of the fees and budgeted CAT costs provided in those filings.