SEC 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. Atkins noted that the Commission issued exemptive relief and approved amendments to the national market system plan governing the CAT over the last year.
"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," Atkins said. "However, we can – and must – do more."
The concept release seeks comment on foundational and existential aspects of the CAT. The Commission is asking for input on the appropriate balance between privacy and confidentiality considerations, civil liberties protections, and regulatory need.
Jamie Selway, Director of the SEC's Division of Trading and Markets, said the Division is looking forward to engaging with the public with respect to the comprehensive review of the CAT. Selway added that the Division anticipates 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 Commission is welcoming comment on possible regulatory responses, including analysis of any costs, burdens, or benefits that may result from proposed modifications to the CAT framework.
The public comment period will remain open for 60 days following publication of the concept release in the Federal Register.