Sifma Cat Reporter Agreement

Recalling liability issues in the event of a data breach, the Securities and Capital Markets Industry Association on Wednesday asked the SEC to review an important provision of THE CTU deferring agreement, which industry members must sign before connecting to the consolidated audit trail. The SEC was asked to intervene in the dispute, but both parties agreed that the language would be removed from CAT`s journalist`s agreement, which limits the OAR`s liability for a violation of the CAT database, kenneth E. Bentsen, president and CEO of SIFMA, said in a statement. The SROs also agreed not to impose language restrictions on liability in the deferring agreement without first proposing a rule and without going through the formal procedure of advertising, commenting and authorizing the SEC, Bentsen said. SIFMA and self-regulatory organizations agreed on THE CAT journalist`s agreement and removed a language that limits debt. In addition, the SROs did not propose THE CAT journalist`s agreement correctly for notification and notice, Bentsen said. SIFMA is now asking the SEC to maintain the application of the reporting agreement. “This would allow CTU to continue reporting on the proposed schedule, while verifying and repairing the obvious shortcomings of the proposed agreement,” he said. The cat-reporter agreement limits the liability of SROs to $500 per industry company that reports and requires brokers to waive liability rights against SRo before companies are allowed to file data on the performance of CTU`s obligations, according to notifications. SIFMA has questioned a section of CAT`s deferrant agreement, which provides liability for self-regulatory organizations or SROs consisting of stock exchanges and securities associations, and CAT LLC, the group formed by U.S. exchanges to develop a plan for the implementation of the consolidated audit trail, and its senior executives, employees and agents “in the event of violation of cat data or other behavior for which THE CAT is responsible.

SRos , limited. “,” SIFMA said in its submission to the SEC. On April 17, 1,382 companies signed the cat-reporter agreement, according to the CAT LLC website. The Securities Industry and Financial Markets Association (SIFMA) announced on Wednesday that it had reached an agreement with the U.S. stock exchanges on the Consolidated Audit Trail (CAT) in which it wanted to limit its liability in the event of a breach of CAT`s privacy. “This would have given brokers obligations in the event of a security breach in the database over which they have no control,” SIFMA argued. On Wednesday, the SROs agreed to remove the language from the agreement that limits the OAR`s liability for a breach of the database. This tally does not affect the entire CTU project or CTU`s current compliance dates.

However, it is likely to be on the agenda of a new CAT journalist`s agreement, which has been revised to no longer include language limitations on the OAR`s liability for any data breach. In addition, SRo must restrict the language of liability in the cat reporter agreement without having to propose a prior rule and go through the public procedure of announcement, comment and authorization with the SEC. This comparison will have the greatest impact on companies that have not signed the agreement on CAT reporters. These companies have just over a month to test and certify themselves before the Go Live compliance date for Phase 2a on June 22, 2020.