Deloitte and AccessFintech have collaborated to support financial institutions facing issues with the upcoming Consolidated Audit Trail (CAT) regulation.
The two firms will work alongside each other to integrate AccessFintech’s new CAT solution into clients’ infrastructure.
The Security and Exchange Commission’s (SEC) CAT regulation presents a number of implementation challenges for financial institutions as they prepare to comply with the upcoming deadline for CAT implementation in December this year.
This includes the inclusion of personal identifiable information (PII); an initial (T+1) reporting accuracy rate of 95%; A T+3 reporting accuracy rate of 98% upon repair; and clear remediation timeframes.
To achieve these standards successfully, reporting entities on both the buy- and sell-side will have to aggregate and normalise reporting data, prioritise and investigate errors, and collaborate in an organised manner. The inability to meet these standards could result in firms receiving monetary penalties.
AccessFintech has leveraged its Synergy Network to launch its new CAT Error Resolution workflow. According to the firm, the network will provide clients with the ability to aggregate, normalise and pair FINRA and transaction reporting data within and between institutions, investigate discrepancies, collaborate and resolve errors across counterparties, and manage reporting and error reconciliation for CAT submission.
By collaborating together, Deloitte and AccessFintech will provide a workflow and network solution aimed at helping organisations manage CAT’s operational challenges, while also improving data transparency and collaboration.
“CAT will create the single largest retail and institutional trading database. It will require a mammoth effort from financial institutions to manage, maintain, reconcile, and report millions of transactions per day,” said Boaz Zilberman, EVP business development at AccessFintech.
“The burden on resources could be enormous without the proper preparation and technology. We are working with Deloitte to help clients ready themselves for what promises to be one of the most time-consuming, and – if not managed well – expensive, obligations in a quickly evolving regulatory landscape.”
Aside from its collaboration with Deloitte, AccessFintech has had a successful year in the realm of funding. In September, the firm secured $60 million in a Series C funding round with investments from BNY Mellon, JP Morgan and Citi. The latest round followed a $20 million Series B in 2020, which brings the total capital raised by AccessFintech to $97 million since 2018.