Who Pays?
Brokers and exchanges have often clashed over who will pick up the tab for the system. While both sides have been pushing for the delay, neither has called for the CAT to be scrapped altogether.
Clayton is appearing Wednesday before the House Financial Services Committee. Jeb Hensarling, the Texas Republican who leads the panel, and two other GOP lawmakers urged the SEC chief last week to delay the CAT’s implementation. In a letter to Clayton, they said the agency should hold off until it can set “information security safeguards and internal controls to ensure the security of confidential and sensitive data.”
“As the 2016 breach of the Edgar filing system revealed that it may have provided the basis for illicit gains through trading, the need to delay the CAT’s implementation until there is an independent assessment of the SEC’s information security regime is only amplified,” wrote Hensarling and Representatives Bill Huizenga and Randy Hultgren in the Sept. 28 letter.
This article was provided by Bloomberg News.