Chairman Paul S. Atkins stated that the Commission has already reduced the CAT’s projected annual operating costs by over $100 million and permanently eliminated the reporting of personal identifiable information to the system. These changes followed exemptive relief and amendments to the national market system plan governing the CAT issued over the last year.
Chairman Atkins said, “Under my leadership, the Commission has made meaningful progress to reform the CAT and strike a better balance between regulatory use, costs, funding, and security considerations.” He added, “However, we can – and must – do more. Accordingly, the concept release seeks comment on foundational and existential aspects of the CAT. The Commission is aware of the need to address many aspects of the CAT, and public comment is a crucial piece of the comprehensive review currently under way.”
The concept release asks for comments on the appropriate balance between privacy and confidentiality considerations, civil liberties protections, and regulatory need. It also invites analysis of any costs, burdens, or benefits that may result from proposed modifications to the CAT framework.
Jamie Selway, Director of the SEC’s Division of Trading and Markets, emphasized the agency's commitment to public engagement. “The Division is looking forward to engaging with the public with respect to our comprehensive review of the CAT,” Selway said. “We anticipate that the concept release issued by the Commission today will provoke meaningful dialogue.”
SEC concept releases are a means for the Commission to obtain public input on policy topics in advance of pursuing any related regulatory action. The release outlines topics of interest, identifies potential options, and raises specific questions for public commenters to consider.
The public comment period will remain open for 60 days following publication of the concept release in the Federal Register. This window provides market participants, trade associations, and other stakeholders an opportunity to influence the future direction of the regulatory infrastructure project.