This FINRA Regulatory Notice 20-20 provides an update on coordination between the national securities exchanges and FINRA on the Consolidated Audit Trail (“CAT”) compliance rules (the “CAT Compliance Rules”).

In particular, the national securities exchanges including Nasdaq, BX, and PSX (“Nasdaq Equity Exchanges”) and FINRA, as CAT NMS Plan Participants, have entered into an amended Rule 17d-2 Plan[1] and corresponding Regulatory Services Agreements to coordinate regulation of the CAT Compliance Rules. Relatedly, the Participants have developed a coordinated approach to enforcement of the CAT Compliance Rules under Participants’ respective Minor Rule Violation Plans.[2] Please see details on these developments in the FINRA Regulatory Notice.

Questions regarding the attached Regulatory Notice can be directed to the contacts below, or to the FINRA contacts listed on the attached notice.

• Martina Rejsjo, Vice President, Nasdaq MarektWatch, at martina.rejsjo@nasdaq.com
• David Strandberg, Head of Enforcement, Nasdaq Regulation, at david.strandberg@nasdaq.com

Additional questions on the Nasdaq Equity Exchanges’ CAT Compliance Rules and Minor Rule Violation Plan provisions, as well as the Rule 17d-2 Plan amendment (including confirming the identity of the exchange that has been designated your firm’s Designated CAT Surveillance Authority if your firm is not a FINRA member), can be directed to David Strandberg.

[1]See Securities Exchange Act Release No. 88366 (March 12, 2020); see also Securities Exchange Act Release No 89042 (June 10, 2020)(adding MEMX LLC to the Rule 17d-2 Plan).

[2]See Nasdaq and BX Rule 9216(2)(b) (Procedure for Violation Under Plan Pursuant to SEC Rule 19d-1(c)(2)); PHLX Rule 9216 (b)(1)(A) (similar) (applying to PSX which operates as part of PHLX).