Statement on CAT Cost Savings

Today, the Commission approved amendments to the 2016 National Market System Plan that established the Consolidated Audit Trail (CAT). I am pleased to support this amendment estimated to save $21 million annually while maintaining the core functionality of CAT.

This amendment modifies requirements related to linking market maker quotes for equity options. In addition, it also makes changes to storage and retention requirements.

Beyond these cost savings measures, a number of commenters made additional suggestions. While we are not addressing these further suggestions in this order, I do support exploration of these and potentially other cost savings measures.

The Commission and self-regulatory organizations depend on the CAT to carry out our respective surveillance and enforcement responsibilities. It is a key tool for maintaining fair and orderly markets and holding wrongdoers to account, including for front running, market manipulation, and insider trading.

No tool, though, should be static. Technology and business models are constantly evolving. Thus, it is important to regularly evaluate the requirements of the CAT with an eye towards ensuring the system is cost effective while still preserving core regulatory functionality.