SEC Slaps Traders With One-Millionth-Cent CAT Fee
Published Date: 5/18/2026
Notice
Summary
Starting May 1, 2026, Nasdaq MRX is charging industry members a tiny fee of $0.000001 per share to help cover the costs of the Consolidated Audit Trail (CAT) system. This fee will run through the end of December 2026, with the first bills arriving in June based on May trades. If you’re a broker or exchange member, get ready to chip in for this important market tracking tool!
Analyzed Economic Effects
4 provisions identified: 0 benefits, 4 costs, 0 mixed.
Per-Share CAT Fee for Industry Members
If you are a broker-dealer or other Industry Member, Nasdaq MRX will charge $0.000001 per executed equivalent share as a CAT Fee (called CAT Fee 2026-1) for the period May 1, 2026 through December 31, 2026. The first monthly invoices will be sent in June 2026 and will be calculated based on trades executed in May 2026.
Budget Amount and Cost Allocation
The budgeted CAT costs for May–December 2026 are $15,149,648. CEBBs collectively are allocated one-third of that amount ($5,049,882.67) and CEBSs collectively are allocated one-third of that amount ($5,049,882.67); the CAT Funding Model anticipates Participants will cover the remaining one-third of the budgeted costs. The fee period is intended to recover approximately two-thirds of the reasonably budgeted CAT costs for 2026.
How Shares Are Counted for Fees
The fee is applied to "executed equivalent shares": each executed share in an NMS Stock counts as 1 executed equivalent share; each executed Listed Option contract is counted using its multiplier (for example, 100 executed equivalent shares per standard option contract); and each executed share in an OTC Equity Security counts as 0.01 executed equivalent share. The Fee Rate before dividing by three was $0.000003799483243631228, which is divided by three and rounded to produce the $0.000001 per executed equivalent share assessed to CEBBs and CEBSs.
Customers Could See Fee Pass-Through
If you trade through a broker or exchange member, the SEC recognized that Industry Members may pass-through CAT fees for customer executed volume, so you could see these fees reflected in trading costs. This pass-through is a possibility identified in the approval materials, not an automatic mandate.
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Key Dates
Department and Agencies
Related Federal Register Documents
2026-07651 — Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
2026-09992 — Agency Information Collection Activities; Proposed Collection; Comment Request; Extension: Rule 611
The SEC is asking to keep collecting info from about 305 financial firms to make sure they follow Rule 611, which stops bad trades that hurt investors. These firms spend around 60 hours a year updating their rules to avoid trading at worse prices than others. This extension keeps things running smoothly with an estimated yearly cost of about $9.5 million for legal and compliance work.
2026-09960 — Self-Regulatory Organizations; MIAX Emerald, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 515A, MIAX Emerald Price Improvement Mechanism and PRIME Solicitation Mechanism
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2026-09967 — Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Chapter 8 of the Exchange's Rulebook Relating To Investigative and Disciplinary Matters
Cboe EDGX Exchange is updating its rules about how it investigates and disciplines its members and their associates. These changes clarify who the Exchange can discipline and improve the process to keep things fair and clear. The new rules took effect right after filing on May 4, 2026, with no new fees involved.
2026-10015 — U.S. Bancorp, et al.; Notice of Application and Temporary Order
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2026-09990 — Self-Regulatory Organizations; 24X National Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend 24X Rule 1.5(c) To Extend by Seven (7) Months the Deadline by Which 24X Must File With the Commission the 24X Market Session Proposed Rule Change Regarding the Commencement of the 24X Market Session
24X National Exchange is getting an extra seven months to file a rule change about when their market session starts. This gives them more time to get everything just right before sharing it with the SEC. Traders and market watchers should keep an eye out for updates, but no money changes or risks are happening right now.
Previous / Next Documents
Previous: 2026-09859 — Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish Fees for Industry Members Related to Reasonably Budgeted CAT Costs of the National Market System Plan Governing the Consolidated Audit Trail for May 1, 2026 Through December 31, 2026
Starting May 1, 2026, Nasdaq ISE is charging industry members a tiny fee of $0.000001 per share to help cover the costs of the Consolidated Audit Trail (CAT) system. This fee will last through the end of 2026 and aims to cover about two-thirds of CAT’s budgeted expenses. Executing brokers will get their first bill in June based on May’s trades, so everyone involved should get ready to chip in!
Next: 2026-09861 — Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing of Amendment No. 1 and Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change, as Modified by Amendment No. 1, To Amend Its Rules Relating to Designated Primary Market-Makers (“DPMs”) and DPM Appointments in Global Trading Hours and Curb Sessions
Cboe Exchange wants to update its rules about Designated Primary Market-Makers (DPMs) so they can work during Global Trading Hours and Curb Sessions, not just regular hours. This means DPMs might have different roles or none at all depending on the session, and their duties will now cover these extra trading times. The SEC is reviewing these changes and deciding if they should be approved, with no money impact announced yet.