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TRUMP, MNUCHIN SHOULD REQUIRE SEC TO LAUNCH THE CONSOLIDATED AUDIT TRAIL (CAT) TO POLICE MARKETS

FOR IMMEDIATE RELEASE
Monday, December 24, 2018
Contact: Nick Jacobs, 202-618-6430 or njacobs@bettermarkets.com

 

TRUMP, MNUCHIN SHOULD REQUIRE SEC TO LAUNCH THE CONSOLIDATED AUDIT TRAIL (CAT) TO POLICE MARKETS AND STOP NEEDLESS COMPUTER-DRIVEN ALGO TRADING AND VOLATILITY

 

Washington, D.C. – Dennis Kelleher, President and CEO of Better Markets, issued the following statement in response to Treasury Secretary Mnuchin’s concerns about the role of computers in the recent steep market drop and called on him as Chairman of the Financial Stability Oversight Council (FSOC) to demand that the SEC get the Consolidated Audit Trail (CAT) launched and fully operational ASAP:

“Computer-drive, high-frequency algo trading has been driving market drops, swings and volatility for too long.  The damage to investors and our economy have been incalculable.  Orderly U.S. markets have been transformed into the Wild West where computers are programmed to move in microseconds to maximize their short-term profits at the expense of everyone else.

“This is preventable if regulators would use the same modern-day technology to monitor, supervise and police the markets.  However, while the traders and predators are moving at 21st Century speeds, regulators are chasing after them in outdated 19th Century horse and buggies.  It’s not a fair fight and investors, markets and out economy are the losers. 

“The solution is a real time, robust Consolidated Audit Trail (CAT), which we have detailed for years and which is significantly overdue.  It is past time that the President, Treasury Secretary, the President’s Working Group, and the FSOC step in and demand that the Securities and Exchange Commission (SEC) complete, launch and make the CAT fully operational ASAP.”

 

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies – including many in finance – to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.com.

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