Information Notice 12/24/24

Completion of Historical CAT Cost Recovery Assessment 1

Published Date:

Summary

Effective January 1, 2025, Historical CAT Cost Recovery Assessment 1 will no longer be in effect for transactions in eligible securities executed by FINRA member CAT executing brokers.

Questions regarding this Notice may be directed to:

  • Amanda Rath, Associate Director, Finance, at (240) 386-6637 or email; or
  • Faisal Sheikh, Assistant General Counsel, Office of General Counsel, at (202) 728-8379 or email.

Discussion

FINRA Rule 6897(b)(1)(A) implemented a Consolidated Audit Trail (CAT) cost recovery fee—Historical CAT Cost Recovery Assessment 1—to recover FINRA’s contributions towards the creation, implementation and maintenance of the CAT prior to January 1, 2022 ($4,391,414), and provides that this fee will remain in effect on a monthly basis until $4,391,414 has been collected from member CAT executing brokers.1 Rule 6897(b)(1)(A) also states that FINRA will provide notice to firms when Historical CAT Cost Recovery Assessment 1 is no longer in effect.

FINRA anticipates it will collect $4,391,414 from the application of Historical CAT Cost Recovery Assessment 1 on transactions through December 31, 2024, and therefore is providing notice that Historical CAT Cost Recovery Assessment 1 will not be assessed on members’ transactions beginning on January 1, 2025. Firms therefore will no longer receive monthly invoices from FINRA for the Historical CAT Cost Recovery Assessment 1 after January 2025 (i.e., the last invoice for Historical CAT Cost Recovery Assessment 1 based on December 2024 transactions will be sent to member CAT executing brokers in January 2025, with payments due February 2025).2

Endnotes

1 For additional information regarding Historical CAT Cost Recovery Assessment 1, see Rule 6897(b)(1)(A); see also Securities Exchange Act Release No. 101064 (September 17, 2024), 89 FR 77558 (September 23, 2024).

2 Historical CAT Cost Recovery Assessment 1 is unrelated to “Historical CAT Assessment 1.” “Historical CAT Assessment 1” is a separate fee assessed, not by FINRA, but by CAT LLC pursuant to the CAT NMS Plan. Historical CAT Assessment 1 will remain in effect until CAT LLC provides notice otherwise. See Securities Exchange Act Release No. 101012 (September 12, 2024), 89 FR 76626 (September 18, 2024); see also FINRA Rule 6897(a)(1)(A).