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Consolidated Audit Trail, LLC and FINRA CAT, LLC will host Weekly Industry Testing Checkpoint Calls every Tuesday at 4:15 pm ET beginning on January 7, 2020 through March 17, 2020. The events will be held at 4:15 pm ET.
Please note that FINRA CAT, LLC is now utilizing Zoom to conduct industry webinars. Please check your firewall to ensure your firm has the ability to view Zoom content. If you are unable to download and run Zoom, please click the “join from your browser” link. The presentation document and recording will be posted.Audio file
- Technical Specifications
- Technical Specifications
- FAQB45. Are electronic responses to a Request for Quote (RFQ) or other forms of solicitation responses reportable to CAT in Phase 2c (equities) and Phase 2d (options)?
As stated in FAQ B44, any equity bid or offer that is accessible electronically by customers or other market participants and is immediately actionable (i.e., no further manual or electronic action is required by the responder providing the quote in order to execute or cause a trade to be executed) is reportable in Phase 2c; and any listed option bid or offer which is accessible electronically by customers or other market participants and is immediately actionable (i.e., no further action is required by the responder providing the quote in order to execute or cause a trade to be executed )Topics
The CAT NMS Plan defines “Small Industry Members” as “an Industry Member that qualifies as a small broker-dealer as defined in SEC Rule 613.” SEC Rule 613, in turn, defines “small broker-dealers” by referring to “those members that qualify as small broker-dealers as defined in §240.0-10(c) of this chapter.” Rule 0-10(c) under the Exchange Act states that the term small business or small organization shall,
[w]hen used with reference to a broker or dealer, mean a broker-dealer that:
- FAQA30. If a firm meets the definition of a Small Industry Member at the time its audited financial statements are prepared, but its total capital subsequently exceeds $500,000 prior to the Small Industry Member deadline of December 2021, must it immediately start reporting to CAT as a Large Industry Member?
No. A firm is a Small Industry Member for purposes of reporting to CAT if its total capital is less than $500,000 on the date on which its audited financial statements were prepared. If the firm’s total capital subsequently exceeds $500,000 prior to the Small Industry Member implementation deadline of December 2021, the firm is not required to begin reporting as a Large Industry Member; rather, the firm must still comply with the Small Industry Member reporting deadline.
- FAQK11. Can an Industry Member choose to report manual option events in Phase 2b, though they are not required until Phase 2d?Yes. While manual options events are not required until Phase 2d, Industry Members may choose to report their manual options activity to CAT in Phase 2b. Industry Members may choose to report all of their manual options order activity, or may choose to report manual options activity on an order-by-order or system-by-system basis. However, as with all data reported to the CAT manual options activity voluntarily reported in Phase 2b must be timely, accurate and complete.Topics
- FAQE28. Exchange origin code is required to be reported on CAT Order Route events when routing orders to an options exchange. However, it is not required by all options exchange protocols for certain market maker orders. In these cases, with what should Industry Members populate the exchOriginCode field on the Options Order Route Event?The exchOriginCode field is a required text field on the CAT Options Order Route Event (“MOOR” event) and CAT will reject the record if the field is not populated. In instances where the market maker sends a market maker order through an options exchange protocol that does not require an exchange origin code, Industry Members must populate the exchOriginCode with “MM.”
- FAQM14. If an Industry Member does not have an account number available to its order handling and/or execution system at the time of order receipt, what should be reported as the Firm Designated ID (FDID)?
In certain scenarios (e.g., institutional, managed accounts), the trading account structure may not be available when a new order is first received from a client and instead, only an identifier representing the client’s trading relationship is available. In these limited instances, the Industry Member may populate the FDID with an identifier used by the firm to represent the client’s trading relationship with the Industry Member (“Relationship ID”) instead of an account number.
An example of such an identifier could be as follows:Topics