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The Securities and Exchange Commission (SEC) has announced a proposed rule change made by Cboe BZX Exchange, Inc. (BZX) to adjust their compliance rules concerning the National Market System Plan Governing the Consolidated Audit Trail (CAT NMS Plan). This change aligns with a conditional exemption granted by the SEC, allowing an alternative method for reporting allocation details. The modifications redefine "Allocation" and "Allocation Report" to improve the accuracy and efficiency of data reporting by eliminating unnecessary reporting burdens on executing brokers who do not handle allocations. The rule change aims to ensure that only industry members with complete information about allocations are required to submit reports, thereby enhancing overall regulatory efficiency.

MEMX LLC has filed a new rule proposal with the Securities and Exchange Commission to set fees for industry members that will fund the National Market System Plan for the Consolidated Audit Trail (CAT) in 2025. The proposed fee, called CAT Fee 2025-1, is set at $0.000022 per executed share and will be collected from executing brokers starting February 2025, based on January 2025 transactions. This new fee intends to cover about half of the costs for 2025 and will replace the previous year’s CAT Fee 2024-1, which was slightly higher. The public is invited to comment on this proposed rule change by January 27, 2025.

The Investors Exchange LLC (IEX) has proposed amendments to its compliance rules related to the National Market System Plan Governing the Consolidated Audit Trail to align with an exemption granted by the Securities and Exchange Commission (SEC). This proposal aims to streamline how allocation reports are submitted, focusing on reporting responsibilities for brokers involved in trade allocations. The changes intend to simplify the process by shifting certain reporting obligations from executing brokers to clearing brokers, especially when brokers do not have enough information to complete allocation reports. This amendment is designed to enhance efficiency and reduce unnecessary burdens on brokers while ensuring regulatory compliance.

The Nasdaq Stock Market LLC filed a proposed rule change with the Securities and Exchange Commission (SEC) to amend its Compliance Rule related to the Consolidated Audit Trail (CAT). This proposal seeks to implement an "Allocation Alternative," which changes the reporting requirements for brokers when allocating shares or contracts to client accounts. The changes aim to ease the reporting burden on executing brokers who do not have the necessary data to submit Allocation Reports, ensuring that those with the relevant information, like clearing brokers, take on this task instead. This approach is intended to maintain the regulatory utility of CAT while reducing compliance costs for brokers.