D.C.— Benjamin Schiffrin, Director of Securities Policy for Better Markets, issued the following statement in connection with the open letter from Securities and Exchange Commission (SEC) Chair Paul Atkins to the Chair of the Consolidated Audit Trail (CAT) suggesting that the SEC intends to assume responsibility for the CAT:
“The Consolidated Audit Trail is the most important tool that the SEC has to fight crime on Wall Street. It allows the SEC to monitor the entire market in real time, including the activities of Wall Street’s biggest and most dangerous financial firms, and identify if they are manipulating the markets or otherwise breaking the law. That is why we have suggested previously that the CAT, which is currently operated by the financial industry, should be a governmental regulatory tool operated by the SEC for the protection of investors.
“SEC Chair Atkins is now signaling that the SEC intends to assume more responsibility for the CAT. If the SEC does transfer the CAT’s functions to itself, it is crucial that the SEC have a plan to fund the CAT’s critical operations while ensuring that it is also able to perform its other vital functions. A fully funded CAT is essential for investor protection.
“Up to now, Chair Atkins has been intent on dismantling key components of the CAT.These actions have made our securities markets less safe and have made the SEC’s job of policing those markets harder. Any overhaul of the CAT that the SEC undertakes must strengthen and not weaken the SEC’s ability to monitor the markets and protect investors.”
Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more.To learn more, visit www.bettermarkets.org.
