Overview
- The SEC directed staff on Monday, Aug. 10 to prepare recommendations on taking direct control of the Consolidated Audit Trail and to draft rule changes needed for a transfer of governance.
- The agency asked staff to consider rescinding Rule 613 while keeping CAT’s existing technical infrastructure and reporting standards and requiring exchanges, FINRA, and broker‑dealers to send data directly to the SEC or an agency appointee.
- As part of the review the SEC will analyze funding alternatives, including shifting CAT costs into the federal budget via congressional appropriations or collecting fees under Section 31 of the Securities Exchange Act.
- The push for agency control follows an Eleventh Circuit decision in July 2025 that vacated the SEC’s 2023 CAT funding order and ongoing industry litigation, including Citadel Securities’ challenge over about $119 million in disputed fee reserves.
- Officials expect the handover to be resource intensive and phased over many months, likely extending into late 2027, and they plan rulemakings, public comment periods, and internal hires to preserve market surveillance continuity and limit reporting disruption.