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Consolidated Audit Trail (CAT) Compliance & CAIS Reporting: A Practical Guide for Broker-Dealers

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  Regulatory reporting has become one of the most critical operational priorities for broker-dealers and capital market firms. With increasing scrutiny from regulators, Consolidated Audit Trail (CAT) Compliance , CAIS-Connect , and FINRA CAIS reporting are no longer optional they are essential for maintaining regulatory readiness, avoiding penalties, and ensuring transparent market activity. This guide explains CAT and CAIS requirements in simple terms, highlights common challenges, and shows how modern compliance solutions can streamline reporting while reducing risk. What Is Consolidated Audit Trail (CAT) Compliance? The Consolidated Audit Trail (CAT) is a centralized system mandated by the SEC to track the entire lifecycle of equity and options orders in U.S. markets from order origination to execution and cancellation. CAT compliance requires firms to: Capture accurate order and trade data Report events within strict timelines Maintain data consistency across systems Respond...
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Critical CAT WSP Areas Firms Must Address for FINRA Compliance in 2025

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  As regulatory oversight intensifies,  Consolidated Audit Trail (CAT) compliance  has become one of the most critical priorities for broker-dealers and trading firms. In 2025,  FINRA CAT   examinations are increasingly focused not just on whether firms submit data — but  how well their Written Supervisory Procedures (WSPs) support accurate, complete, and timely reporting . With evolving guidance, tighter timelines, and heightened expectations around data quality, firms can no longer rely on reactive compliance practices. Understanding which CAT-related WSP areas draw the most regulatory attention is essential to staying inspection-ready. Below are the  top CAT WSP focus areas FINRA is scrutinizing in 2025 , and how modern platforms like a  Regulatory Surveillance and Management System (RSMS)  and  CAIS-Connect  help firms stay ahead. 1. Accurate CAT Reporting Accuracy remains the cornerstone of  FINRA CAT  compliance ...
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Conquer FINRA's CAT and CAIS Rules for 2025 Success

  Financial firms face mounting pressure from FINRA’s  Consolidated Audit Trail (CAT)   and  Customer Account Information System (CAIS)   requirements, which demand precise reporting of customer and account data alongside trade events. These rules, fully enforced since May 2024 for all industry members, aim to create a comprehensive audit trail for SEC oversight, but compliance challenges persist amid recent exemptions and technical updates.   Capital Market Solutions (CMS ) streamlines this with cloud-based tools like RSMS, CAIS, and CAT modules.​ Core CAT and CAIS Requirements CAT mandates reporting all order events across equities, options, and ETFs, while CAIS focuses on customer details like Firm Designated IDs (FDIDs), Transformed Input IDs (TIDs), and account updates within three trading days of changes. Firms must monitor the CAIS Reporter Portal daily for errors, ensure data hashing for privacy, and refresh FDIDs periodically — such as by May 31, 2...
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Strengthening Compliance in a High-Scrutiny FINRA CAT Envir

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  The pace of regulatory change is accelerating at an unprecedented rate. Firms today operate under constant scrutiny from regulators such as the SEC and FINRA, where compliance is no longer about checking boxes — it’s about mastering data accuracy, transparency, and accountability across increasingly complex reporting ecosystems. Despite significant investments in legacy compliance infrastructure, many firms still face dangerous regulatory “blind spots.” These hidden gaps — often buried in data silos, reporting workflows, or evolving regulatory interpretations — can lead to  FINRA CAT  rejections ,   FINRA CAIS inconsistencies , audit failures, and even enforcement actions. At  Capital Market Solutions , we work closely with broker-dealers and investment firms navigating mandates such as  FINRA CAT  and the  Customer Account Information System (CAIS) . Below are five of the most common regulatory risk blind spots — and how modern compliance platf...
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