Bloomberg News

SEC Weighs Requiring Consolidated Audit Trail for Markets

July 11, 2012

The U.S. Securities and Exchange Commission may require exchanges and self-regulatory organizations to create a market-wide system to monitor and analyze trading activity under a measure being considered today.

SEC commissioners are scheduled to vote on a final rule to create the so-called consolidated audit trail at a meeting in Washington. National exchanges and SROs would be required to submit comprehensive plans detailing how they would develop, implement and maintain trails to collect and identify every order, cancellation, modification and trade execution for all listed equities and equity options, the SEC said in a fact sheet prepared for the meeting.

“In today’s competitive marketplace, trading is dispersed across a variety of market centers ranging from public venues, to private dark pools, to individual broker-dealers,” SEC Chairman Mary Schapiro said in a statement prepared for the meeting. “A consolidated audit trail that accurately tracks orders throughout their lifecycle and identifies the broker dealers handling them will provide us with an unprecedented ability to monitor the markets we regulate.”

To contact the reporter on this story: Gregory Mott in Washington at gmott1@bloomberg.net

To contact the editor responsible for this story: Maura Reynolds at mreynolds34@bloomberg.net


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