FIS Blog

FIS Introduces a Consolidated Audit Trail Reporting and Analytics Platform for Broker-dealers


Steve Sabin | Monday, October 30, 2017

Starting November 15, 2018, large broker-dealers must begin submitting their U.S. equities and options trade data to the Consolidated Audit Trail (CAT) repository. The CAT repository will allow regulators to accurately follow a trade order through its entire life cycle, from generation through to routing, modification, cancellation, and/or execution, and reconstruct market events such as 2010 Flash Crash in a timely and efficient manner. For broker-dealers, CAT compliance will present significant operational, staffing and technology changes.

However, CAT may allow broker-dealers to consolidate overlapping regulatory reporting requirements as CAT will eventually eliminate legacy reporting systems, including the Order Audit Trail System (OATS), Electronic Blue Sheets (EBS) and Large Trade Reporting (LTID). Additionally, having access to the same data that the regulators will be using for regulatory purposes will help broker-dealers keep their surveillance programs in sync and ensure proactive compliance, for example, detect and fix errors prior to the submission to the CAT. Even more, the CAT datasets, submitted by broker-dealers, will offer an unprecedented amount of information and with the right tools they offer valuable business intelligence into the order flows.

This is why FIS introduces a CAT regulatory compliance and trade life cycle forensics solution for broker-dealers. FIS’ Protegent CAT will cover CAT reporting requirements along with advanced pre- and post-submission data validation and error-correction capabilities. It will also allow broker-dealers to consolidate and streamline overlapping regulatory reporting requirements, such as OATS, EBS and LTID. In addition, Protegent CAT will provide timely insight into order flow volumes, routing practices and various other trading metrics with drill-down functionality, allowing further order routing optimization.

Protegent CAT will offer the following benefits to broker-dealers:

  • CAT compliance: Meet CAT reporting requirements by ingesting, validating, processing and reporting all CAT-required data to the CAT Processor, correcting errors post-submission, while retaining CAT datasets on WORM-compliant storage for seven years.
  • Streamlined regulatory requirements: Consolidate OATS, EBS and LTID trade-reporting systems and eliminate duplicative data collection and storage costs.
  • Proactive compliance: Detect errors prior to submission and provide correction capabilities, minimizing the number of submitted errors and mitigating the risk of non-compliance and fines.
  • Big data analytics and forensics: CAT datasets will represent a massive amount of data. Protegent CAT will offer powerful tools to discover patterns and correlations of order volumes, profitability, routing and others, leading to new business insights and opportunities.

Since the CAT Processor will collect sensitive data, broker-dealers must choose a partner that has a track record of handling such data. FIS maintains close relationships with the information security community, conducts ongoing vulnerability scanning and penetration testing, employs data loss prevention (DLP) controls, maintains robust vendor risk management (VRM) protocols, encrypts data at rest and in flight, monitors and controls physical and logical access to all FIS’ data centers and servers 24x7 to ensure that hosted systems and our clients’ data are secure at all times.

FIS’ Protegent CAT will help broker-dealers not only comply with the CAT but gain additional business value of the CAT requirements and turn them into opportunities.

Explore Protegent CAT by viewing the brochure, Are You Ready for CAT? or watching the webinar recording, CAT: Regulatory Requirement or Big Data Opportunity? For more information about Protegent CAT, please contact us directly.

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Tagged in: Institutional and Wholesale, Broker-dealer, Consolidated Audit Trail, Protegent CAT

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