Wall Street Fights Over Tab for Massive Stock-Trade Database
The U.S. Securities and Exchange Commission approved new rules on the funding of a comprehensive market data surveillance system to equally split its operating costs among buyers, sellers and the stock exchanges where they trade. The decision faces opposition from the investment industry, which says it may be left paying an unfairly large share of the resulting fees. The decision was the latest twist in a decade-long effort to complete the Consolidated Audit Trail (CAT), a repository of investor and transaction data meant to give regulators visibility into U.S. market operations. The new funding model creates fees based on the volume of executed trades in shares and options. This shifts away from a structure based on message traffic and market share, while allowing stock exchanges several years to recoup hundreds of millions already spent.
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