SEC Enhances Market Oversight With Adoption of Consolidated Audit Trail Rule

August 07, 2012
A divided Securities and Exchange Commission recently voted to adopt a new rule leading to the creation of a market-wide consolidated audit trail (CAT) for transactions in listed equities and options in U.S. markets. The CAT, along with the large trader reporting rules adopted by the SEC in 2011, will enhance the ability of regulators to detect manipulative conduct and rapidly reconstruct market events by capturing order and event information across all U.S. markets — from order inception through routing, cancellation, modification and execution. This update describes the SEC’s initiative.