Thursday, March 27, 2014


The Securities Exchange Commission (SEC) Rule 613 requires the timely collection of securities transaction executed in US markets.  In addition to the SEC, CAT is being created with the active collaboration of the registered exchanges and FINRA which are commonly known as Self Regulatory Organizations (SRO). The first step focuses on the reporting of US National Market Securities (NMS), which includes listed equities and options.

Though a driver of this effort is the “Flash Crash of 2010” I believe that it reflects the regulators realization that they need to be more proactive in gathering timely data on all transactions flowing through the US infrastructure. Logically they are starting with trade data, which are currently dispersed across multiple markets. There are a still number of open issues that remain to be addressed by the regulators but I am confident that the other participant’s interests and concerns will be addressed to the benefit of the industry.

Though this effort requires substantial efforts to develop and implement, it is a real opportunity to bring the industry into the 21st century. In addition it should provide an opportunity to sunset or eliminate various trade reporting systems that provide similar data to specific regulators. Also, I believe that this data collected by a central source may, in the future, provide other benefits to the industry as well.

            Do you believe that there is real value in this new rule?

                        If so, what are the benefits? If not, why not?

                                    If not, what the alternatives to meeting the regulatory needs?