Navigating FINRA CAT Compliance with Confidence: How Capital Market Solutions Can Help

 

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 against Goldman Sachs for inaccuracies in CAT reporting, underscore the importance of getting it right.

Capital Market Solutions: Your Partner in CAT Compliance

At Capital Market Solutions (CMS), we specialize in helping firms navigate the complexities of FINRA CAT through our industry-leading Regulatory Surveillance and Management System (RSMS). Our platform is built to make CAT compliance seamless, accurate, and auditable.

Key RSMS Capabilities:

CAT — Recon Module

This module performs detailed reconciliations between your firm’s CAT submissions and internal trade records. It flags discrepancies in timestamps, FDIDs, account types, and more — ensuring your CAT reporting is consistent and correct.

CATalyst™ Analytics

CATalyst™ offers powerful analytics that extract and normalize CAT-reported data, allowing you to monitor for anomalies before regulators do. With advanced filtering and cross-referencing tools, your compliance team can stay proactive and informed.

Case Management & Audit Trail

Track the entire lifecycle of a CAT event — submission, reconciliation, investigation, and resolution. RSMS creates a clear, auditable path to demonstrate compliance with FINRA CAT requirements.

Cloud-Based & Secure

RSMS is a fully hosted, secure solution that gives you remote access to all reporting tools. Whether working in the office or remotely, your team can manage compliance activities with confidence.

Stay Ahead of Regulatory Expectations

As FINRA and the SEC continue to enhance market oversight through CAT, the bar for compliance will only rise. That’s why proactive, data-driven surveillance and reporting tools are essential. At CMS, we’re here to make sure you don’t just keep up — you stay ahead.

Ready to simplify your FINRA CAT compliance?
Contact us or explore the full capabilities of RSMS on our CAT compliance page.

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