The Davis Polk Financial Regulation Reform Team recently blogged about the breach of the SEC’s EDGAR database and how that breach impacts the Consolidated Audit Trail (“CAT”)
“In the wake of a highly-publicized cybersecurity breach involving the SEC’s EDGAR system, SEC Chairman Jay Clayton has been in the hot seat at recent congressional hearings, fielding pointed questions as to whether the SEC should delay implementation of the Consolidated Audit Trail (“CAT”). The SEC has not announced a delay, although Clayton indicated he may be willing to modify its implementation
Data security concerns have been raised because [under CAT] broker-dealers will be required to report sensitive personal customer identifying information, including customers’ names, addresses, dates of birth and social security numbers. Industry commenters, such as SIFMA and the ICI, have also long been vocal in raising misgivings about the CAT’s data protections, including regarding the perceived potential to reengineer CAT data to reveal sensitive trading strategies and holdings.”
Read the rest of the post on the FinRegReform blog, here.