Wall Street Charges Itself Fees to Spy on Itself
Published Date: 1/6/2025
Notice
Summary
Starting January 1, 2025, FINRA is updating its rules to charge a new fee that helps cover the costs of the Consolidated Audit Trail (CAT), a system that tracks trading activity. This change affects financial firms that use FINRA’s services and will help FINRA recover its share of CAT expenses for the year. The fee kicks in immediately and aims to keep the system running smoothly without surprises.
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Analyzed Economic Effects
2 provisions identified: 0 benefits, 2 costs, 0 mixed.
FINRA Imposes CAT Cost Fee
Starting January 1, 2025, FINRA will charge a new Consolidated Audit Trail (CAT) cost recovery fee under FINRA Rule 6897(b) to recoup FINRA's designated portion of the reasonably budgeted CAT costs for the period January 1, 2025 through December 31, 2025. The rule change was filed for immediate effectiveness and is intended to recover FINRA's share of CAT expenses for that 2025 period.
Industry Members Pay CAT LLC Share
FINRA filed a separate proposed rule (File No. SR-FINRA-2024-023) to establish fees assessed to Industry Members, payable to Consolidated Audit Trail, LLC, to recover approximately one-half of the reasonably budgeted CAT costs for the period January 1, 2025 through December 31, 2025. These fees are intended to collect Industry Members' share of CAT expenses for 2025.
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