News | 05.15.20
SIFMA Reaches Agreement with Exchanges in U.S. Database Dispute
The Securities Industry and Financial Markets Association on Wednesday said it resolved a dispute with U.S. stock exchanges that had threatened to hold brokers liable for any breaches of the Consolidated Audit Trail (CAT) database controlled by the exchanges and FINRA. Brokers must soon begin sending sensitive client trading information to the database. The exchanges and FINRA had insisted the brokers sign an agreement limiting their financial liability to $500 per reporting firm in the case of a data breach. That would have put brokers on the hook for any security breaches of the database, which they have no control over, according to SIFMA, which said the exchanges and FINRA agreed to remove the language from the agreement limiting their liability for a breach of the database.
Read the full article on Reuters