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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.

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.