Broker-Dealer Firms Raise Alarms That SEC’s CAT Database Isn’t Secure

Tyler Gellasch, executive director of the Healthy Markets Association, is against any delay in implementing the CAT. The group is made up of buyside firms – including large asset managers, pension plans and hedge funds – seeking to promote data-driven reform in the U.S. equity market structure.

“Exchanges and Finra have not provided new info as to why the provider they selected [Thesys] and the expectations and standards that they set are somehow inadequate,” he said.

Gellasch suggested detractors of the CAT are simply playing on “convenient public fear” to try and derail the CAT. The draft legislation to require the SEC to produce a cost-benefit analysis of the CAT would “leave it tied up in legal complexity for years … if it doesn’t kill [it] in entirely,” he said.

Read more in Financial Adviser IQ.