Capital Market Solutions

  Staying compliant with the  FINRA Consolidated Audit Trail (CAT)  remains a top priority for broker-dealers in 2025. With regulatory expectations rising and oversight intensifying, firms must ensure their  Written Supervisory Procedures (WSPs)  are comprehensive, actionable, and aligned with FINRA’s scrutiny. Whether it’s addressing data quality, resolving submission errors, or responding to regulatory queries, the margin for error has never been slimmer. But which aspects of your CAT WSPs are most likely to capture FINRA’s attention? Below,  we highlight the five key areas  where firms must excel — and show how  RSMS (Regulatory Surveillance and Management System)  by Capital Market Solutions supports firms in navigating FINRA CAT requirements confidently and efficiently. 1. Accurate CAT Reporting Accuracy forms the cornerstone of successful CAT compliance, yet it often proves challenging. Many firms fall short due to: Unclear Reporting Gu...

  In the complex world of financial regulation, accurate and timely reporting isn’t just a best practice — it’s a regulatory necessity. The Financial Industry Regulatory Authority (FINRA) enforces strict compliance standards to ensure market integrity, protect investors, and maintain fair trading environments. Among these requirements,  correct reporting of trade and account information  plays a pivotal role. For firms seeking to stay compliant, the process can be challenging — unless they leverage the right tools. This is where  Regulatory Surveillance and Management System  (RSMS)  emerges as a game-changer. Why Accurate Reporting Matters in FINRA Compliance FINRA mandates broker-dealers to report trading activity, customer account details, and ownership data through systems like  CAT (Consolidated Audit Trail )  and  CAIS (Customer and Account Information System) . These systems enable regulators to detect market manipulation, insider trad...

  The  FINRA Consolidated Audit Trail (CAT)  is one of the most significant regulatory initiatives in U.S. financial markets. Mandated under SEC Rule 613, FINRA CAT is designed to collect comprehensive trade data across all equities and options markets, helping regulators detect market manipulation, fraud, and systemic risks more effectively. For broker-dealers and other market participants, this regulation presents both an opportunity and a challenge. Ensuring accurate, timely, and complete data reporting is critical — not just for regulatory compliance, but for maintaining operational integrity. Why FINRA CAT Matters The FINRA CAT requires firms to report detailed information about orders, trades, customer identities, and events throughout the lifecycle of a trade. The scale and complexity of the reporting requirements demand advanced technology, robust reconciliation processes, and vigilant oversight. Recent enforcement actions, such as FINRA’s $1.45 million fine again...

  In recent years, the U.S. financial industry has faced an intensifying push for transparency, driven by an increasing demand from regulators and investors to better understand how orders move through complex market systems. One of the most significant efforts in this regulatory evolution is the creation and ongoing expansion of the  Consolidated Audit Trail , or CAT. Born out of SEC Rule 613, CAT is a centralized database designed to capture a complete view of order and trade activity across all U.S. equity and options markets. It is the most ambitious market surveillance initiative ever undertaken in the country, both in terms of scale and the depth of information it collects. At its core, the purpose of the Consolidated Audit Trail is to empower the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority ( FINRA ) with the tools they need to monitor market activity more effectively. By capturing detailed data for every order — from the mome...

  The Consolidated Audit Trail (CAT) is one of the most important regulatory reporting initiatives in U.S. financial markets. Managed by FINRA , CAT requires broker-dealers to report comprehensive order and trade data for equities and options. In 2025, compliance expectations have intensified — making accuracy, speed, and automation critical for firms. If you’re searching for FINRA CAT compliance solutions , you’re not alone. Thousands of firms are actively investing in technology to streamline reporting, reduce risk, and avoid regulatory penalties. 2025 Trends Shaping FINRA CAT Reporting 1. Automated Reporting Is Now Essential Manual reporting isn’t just inefficient — it’s risky. As regulators become less tolerant of reporting errors, firms are turning to CAT automation platforms to ensure accuracy and reduce workload. Capital Market Solutions offers an all-in-one Regulatory Surveillance and Management System (RSMS) that simplifies CAT reporting and exception management. 2. CA...