US Broker-Dealer and Exchange Reporting Requirements
All registered US broker-dealers and exchanges are required to capture and report the following details to FINRA CAT (Consolidated Audit Trail) for all US Equities and Equity Options:
Trade Orders:
- Broker-dealers must capture and report details of every trade order, including the time it was received, the identity of the security, and the quantity of shares or options involved.
Order Routing:
- Broker-dealers must provide detailed information about how each order was routed. This includes which venues or exchanges received the order for execution.
Order Execution:
- Execution details must also be reported, including whether the trade was executed fully or partially, and any price information.
The reporting obligation is intended to enhance transparency and oversight of the US securities markets, ensuring that FINRA CAT can monitor all trade-related activities across equities and options.
Key Objectives:
- Market Transparency: Ensuring all market activities are accurately tracked.
- Regulatory Compliance: Meeting the standards set by the SEC and FINRA for data reporting and market surveillance.
- Investor Protection: Helping regulators prevent fraud and market manipulation.
For more information, visit the official FINRA CAT website or refer to the SEC's guidance on CAT.