While exchanges will start submitting equity and options data to the SEC’s consolidated audit trail on Nov. 15, institutional investors will be more concerned about what’s coming a year later,…
While exchanges will start submitting equity and options data to the SEC’s consolidated audit trail on Nov. 15, institutional investors will be more concerned about what’s coming a year later, writes Rick Baert of Pensions & Investments.
That’s because on Nov. 15, 2019, broker-dealers will be required to submit data to the CAT on trades they execute on behalf of clients, adding a much larger amount of information to the audit trail that will specify how their clients — including institutional investors — trade equities and options. That huge data repository could attract the attention of cybercriminals, sources said.
Peter Maragos, CEO of Dash Financial Technologies, a New York trading technology and analytics provider, said cybersecurity risk is nothing new in trading. “This data exists. It’s out there,” Mr. Maragos said. “Security is here forever. You’ve got to expect people to tamper with our systems, so you need to protect them. That’s the job of broker-dealers, exchanges, the SEC. To me, cybersecurity is meat-and-potatoes stuff.”
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