04.16.26

SEC Looks To Reform CAT Database

by: Lydia Beyoud; Bernard Goyder

The U.S. Securities and Exchange Commission is seeking public input on how to reduce the cost and scope of data collected by the Consolidated Audit Trail (CAT), a database created to monitor trading activity. Regulators aim to propose new rules later this year, while also reviewing governance, security and risks from emerging technologies like AI. CAT has faced criticism for high costs — once exceeding $248 million annually — though recent changes lowered projected 2026 costs to $156 million. Industry groups argue the system is overly expensive and intrusive, while regulators stress its importance for market oversight.

Read the full article on Bloomberg