08.11.26

SEC Weighs Direct Funding for Costly Market-Tracking Database

by: Lydia Beyoud; Katherine Doherty

The U.S. Securities and Exchange Commission (SEC) is considering taking direct control and funding of the Consolidated Audit Trail, a database tracking trades across U.S. equities and options markets. The proposed overhaul follows a 2025 court ruling that invalidated its existing funding structure, which required exchanges and the Financial Industry Regulatory Authority to finance the system and potentially recover costs from brokers. SEC Chairman Paul Atkins said direct administration could address longstanding concerns over costs, governance and funding, although changes likely would not occur until late 2027. The agency also plans to reduce expenses by deleting data older than five years and slowing certain reporting requirements, while limiting collection of unnecessary information.

Read the full article on Bloomberg