{"id":43692,"date":"2019-11-14T15:54:05","date_gmt":"2019-11-14T23:54:05","guid":{"rendered":"https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/microsoft-in-business\/?p=43692"},"modified":"2020-01-15T11:58:04","modified_gmt":"2020-01-15T19:58:04","slug":"cat-compliance-with-microsoft-and-cloudreach","status":"publish","type":"post","link":"https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/microsoft-in-business\/business-transformation\/2019\/11\/14\/cat-compliance-with-microsoft-and-cloudreach\/","title":{"rendered":"CAT Compliance with Microsoft and Cloudreach"},"content":{"rendered":"
Ruchi Nanda | Industry Solutions Manager, Financial Services
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On May 6, 2010, the United States stock market collapsed.<\/span>\u00a0<\/span><\/p>\n

In 5 minutes, the Dow dropped 600 points<\/span>\u00a0and\u00a0<\/span>investors<\/span>, brokers, economists, and the SEC\u00a0<\/span>briefly\u00a0<\/span>panic<\/span>ked<\/span>. Twenty minutes later, the market recovered\u00a0<\/span>and\u00a0<\/span>pulses slowed,\u00a0<\/span>but the impact of the Flash Crash\u00a0<\/span>was long-lasting<\/span>. Nearly a decade later, experts remain unsure of what caused this sudden<\/span>\u00a0fall<\/span>. Whether\u00a0<\/span>it was\u00a0<\/span>due to an inadvertent sell order, high frequency traders, large directional bets, or technical glitches, the aftermath of the Flash Crash left one thing certain\u2014we need a system in place to understand why these dramatic market swings\u00a0<\/span>occur.<\/span>\u00a0<\/span><\/p>\n

In November 2016, the SEC approved\u00a0<\/span>regulations mandating\u00a0<\/span>the Consolidated Audit Trail (CAT). Designed to help the SEC track illegal and manipulative trades and identify the cause of significant trading value swings, CAT mandates that all\u00a0<\/span>broker \/ dealers<\/span>\u00a0submit a log of all created orders to a unified federal database of equity and options trades.<\/span>\u00a0<\/span>Starting April 1, 2020, regulated entities will be required to submit their\u00a0<\/span>necessary<\/span>\u00a0information to the SEC no later than 8 A.M. ET on the following trading day.<\/span>\u00a0<\/span><\/p>\n

All reportable events must be\u00a0<\/span>submitted\u00a0<\/span>to CAT in a specific format that allows the regulatory agency to efficiently and accurately track an order from origination through routing\u00a0<\/span>and\u00a0<\/span>modification\u00a0<\/span>to\u00a0<\/span>cancellation or execution.\u00a0<\/span>While the initial\u00a0<\/span>implementation<\/span>\u00a0will begin this upcoming spring, the full CAT program will be phased in over the course of the next three years, with each phase adding new requirements.\u00a0<\/span>\u00a0<\/span><\/p>\n

An Azure-Based Solution for CAT Compliance<\/span><\/b>\u00a0<\/span><\/p>\n

Microsoft and\u00a0<\/span>Cloudreach<\/span><\/a>\u00a0have\u00a0<\/span>partnered\u00a0<\/span>to create an Azure-powered submission network to\u00a0<\/span>simplify\u00a0<\/span>the CAT<\/span>\u00a0<\/span>compliance process. This CAT Compliance as a\u00a0<\/span>S<\/span>ervice<\/span>\u00a0(CCaaS)<\/span>\u00a0model equips broker<\/span>\u00a0\/\u00a0<\/span>dealers with an off<\/span>\u2013<\/span>the<\/span>\u2013<\/span>shelf compliance solution\u00a0<\/span>for submitting their event logs to the CAT database.<\/span>\u00a0<\/span><\/p>\n

By\u00a0<\/span>ingesting<\/span>,\u00a0<\/span>transforming<\/span>, and\u00a0<\/span>transferring<\/span>\u00a0the necessary data through Microsoft Azure, organizations can<\/span>\u00a0<\/span>reduce regulatory reporting needs and focus efforts on building value<\/span>\u2013<\/span>added services rather than\u00a0<\/span>mandatory<\/span>\u00a0compliance processes<\/span>.<\/span>\u00a0<\/span>Cloudreach will build custom models for data transformation, validation<\/span>,<\/span>\u00a0and\u00a0<\/span>submission<\/span>.<\/span>\u00a0<\/span><\/p>\n

Microsoft\u00a0<\/span>Azure offers broker<\/span>\u00a0\/\u00a0<\/span>dealers a comprehensive suite of tools for handling CAT data:<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n