Cat Reporter Agreement

by lobo April 8, 2021  

On April 17, 1,382 companies signed the cat-reporter agreement, according to the CAT LLC website. SIFMA and self-regulatory organizations agreed on THE CAT journalist`s agreement and removed a language that limits debt. “SIFMA and its members support CTU and its regulatory intentions, but remain concerned about the risk of sensitive customer information being collected in a government-imposed database. Brokers should not be liable for an infringement in the CAT database of which they have no overview. The main idea of SIFMA is: “Whoever holds the data is responsible.” Responsibility for CTU violations should fall to the SROs, which hold, maintain and control the data. The SROs wrongly denied merchant brokers the ability to report data in accordance with the law, including the proposal for non-compliance with the CAT journalist`s agreement to prevent and comment. As our members are committed to advancing the CTU, we call on the SEC to lift the OAR`s denial of access and to prevent its application. This would allow CTU to continue reporting on the proposed schedule, while verifying and repairing the obvious deficiencies in the proposed agreement. In addition, the SROs did not propose THE CAT journalist`s agreement correctly for notification and notice, Bentsen said. SIFMA is now asking the SEC to maintain the application of the reporting agreement. “This would allow CTU to continue reporting on the proposed schedule, while verifying and repairing the obvious shortcomings of the proposed agreement,” he said.

The cat-reporter agreement limits the liability of SROs to $500 per industry company that reports and requires brokers to waive liability rights against SRo before companies are allowed to file data on the performance of CTU`s obligations, according to notifications. The solution comes after a dispute between U.S. stock exchanges and brokers, who had threatened to hold brokers responsible for breaches of a new trading database controlled by the exchanges and the Financial Industry Regulatory Authority (FINRA). As brokers prepare to send critical and sensitive business information to CTU, SROs had insisted that brokers sign an agreement limiting the OAR`s financial liability to $500 per reporting company in the event of a data breach. Recalling liability issues in the event of a data breach, the Securities and Capital Markets Industry Association on Wednesday asked the SEC to review an important provision of THE CTU deferring agreement, which industry members must sign before connecting to the consolidated audit trail. This tally does not affect the entire CTU project or CTU`s current compliance dates. However, it is likely to be on the agenda of a new CAT journalist`s agreement, which has been revised to no longer include language limitations on the OAR`s liability for any data breach. In addition, SRo must restrict the language of liability in the cat reporter agreement without having to propose a prior rule and go through the public procedure of announcement, comment and authorization with the SEC.

This comparison will have the greatest impact on companies that have not signed the agreement on CAT reporters. These companies have just over a month to test and certify themselves before the Go Live compliance date for Phase 2a on June 22, 2020. As soon as the revised agreement has been published and accepted by reporting entities or credit rating agencies, cat is expected to experience a marked increase in reporting events and companies seeking their production certification. SIFMA has questioned a section of the CAT Reporters Agreement that limits the liability of self-regulatory organizations or SROs, which are stock exchanges and securities associations, and CAT LLC, the group of U.S. organizations.


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