SEC Proposes Amendments Related to Consolidated Audit Trail
August 24, 2020
The SEC has issued a proposed
rule, Amendments to the National Market System Plan Governing the
Consolidated Audit Trail to Enhance Data Security. As noted in a public statement on the proposal, the proposed amendments would:
- Provide “greater oversight, consistency and transparency regarding the appropriate use of CAT data.”
- Require “use of secure analytic workspaces (SAWs) for the analysis of large data sets permitting exceptions only when non-SAW environments are subject to third party security assessments and monitoring.”
- Incorporate “specific restrictions for the access and analysis of customer and account information including required use of the SAW and a defined workflow.”
- Remove “sensitive PII from CAT reporting requirements in accordance with the March 2020 PII exemption order in order to bring greater certainty to market participants that CAT reporting requirements do not include social security numbers, account numbers and dates of birth.”
- Preserve and enhance “existing security requirements.”
For more information, see the press release
on the SEC’s Web site.