Forefront Communications

Markets Media: CEO CHAT: n-Tier, Peter Gargone

Alexandra Hamer

Alexandra Hamer

The Consolidated Audit Trail (CAT) is coming. And soon.

The much anticipated and awaited securities audit trail that is being billed as a means to help monitor and police stock market trading will begin operation for file submission in April.

Years in the making, CAT is expected to fill multiple needs for myriad market participants but many questions linger. Is it enough? Is it worth the cost?

Peter Gargone, n-Tier Founder and Chief Executive Officer sat down with Traders Magazine’s Editor John D’Antona Jr. and spoke about the aforementioned issues as well as offered his opinions.

TRADERS MAGAZINE: What are some of the main issues brokers have faced in meeting the CAT deadline? Technology? Security?

Peter Gargone: Security and liability for potential security breaches are an ongoing concern for brokers ahead of the CAT deadline. Brokers are working to ensure there are robust operational and technical processes in place to monitor and manage the reporting accuracy. Successfully implementing a technological solution that can handle the volumes of exceptions and corrections expected to result from the rollout of CAT is also top of mind. In CAT’s latter phases, brokers remain concerned about the occurrence of rejects from cross- firm data linkage.

TM: Can the CAT be the answer the SEC wants or envisioned? Or does it fall short?

Gargone: It is still to be determined whether CAT will satisfy the SEC’s particular requirements. As an overall initiative CAT will undoubtedly provide a more complete and accurate view of activities in the market. Still, the value provided by this additional data will depend on the level of data accuracy and data quality achieved by the industry.

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