SEC Seeks Direct Control Over Consolidated Audit Trail

In an Aug. 10 letter to CAT Operating Committee Chair Robert Walley, Atkins directed agency staff to develop recommendations for replacing the current joint-governance model involving national securities exchanges and the Financial Industry Regulatory Authority. The agency aims to address long-standing concerns regarding costs and transparency by potentially funding the system through congressional appropriations or Section 31 transaction fees. While the proposal involves rescinding Rule 613—the original 2012 mandate that established the system—the underlying infrastructure and reporting requirements for broker-dealers would remain intact to ensure market continuity.

This shift follows a broad public feedback process initiated in April, where market participants expressed a clear preference for the SEC to assume greater responsibility for the project. By bringing the system under the direct authority of the federal regulator, the commission hopes to resolve persistent governance friction. The transition will require a rigorous rulemaking process, including assessments of personnel and technology needs, as the agency prepares to manage the surveillance of equity and options markets directly. Officials plan to provide public updates throughout the development of the new framework, with stakeholders expected to have ongoing opportunities to weigh in on the restructuring process.