The Securities and Exchange Commission proposed amendments to its national market system plan governing the rollout of the consolidated audit trail (“CAT”) to help prevent further delays. As originally proposed, national securities exchanges and the Financial Industry Regulatory Authority were scheduled to begin reporting participant data to a central repository on November 15, 2017. According to the SEC, the self-regulatory organizations have not met CAT deadlines. The SEC proposal requires SROs that are part of CAT to file a formal implementation plan with the SEC and follow up with quarterly status reports. Additionally, the SEC proposes that SROs be penalized by being able to recover only reduced funding from industry members if they do not meet four target deadlines for elements of CAT. (Click here for background in the article “SEC Chairman Denies Request to Formally Delay First Phase of CAT Rollout” in the November 19, 2017 edition of Bridging the Week.)