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SEC

SEC

Securities and Exchange Commission (US)

Medium Impact

SEC notice: TXSE immediate-effect filing implements CAT Historical CAT Assessment 1A fee for Industry Members

Published

Sep 11, 2026

Effective

Sep 2, 2026

Topics

Consolidated Audit Trail, SRO fees, Broker-dealer fees, Market structure, CAT funding, TXSE

Executive Summary

The SEC has published a notice of filing and immediate effectiveness for a Texas Stock Exchange LLC rule change filed on September 2, 2026. The filing implements, on behalf of CAT LLC, Historical CAT Assessment 1A, a Consolidated Audit Trail funding fee for Industry Members that are CAT Executing Brokers for the buyer side or seller side. The assessment is designed to recover $38,964,855.34 of Historical CAT Costs 1 that remained uninvoiced after Historical CAT Assessment 1 stopped, with $19,482,427.67 allocated collectively to CEBBs and the same amount to CEBSs. The fee rate is $0.000002 and is applied to transactions in Eligible Securities using executed equivalent shares and the CAT NMS Plan’s one-third multiplier methodology. The filing states that it addresses only Historical CAT Assessment 1A, not prospective CAT costs or any other historical assessment. Operational impact is primarily finance, billing, invoice-reconciliation and client pass-through governance, using existing CAT and exchange/TRF data fields rather than new CAT reporting templates.

What Changed

newHistorical CAT Assessment 1A added through TXSE fee filing

Previous

Historical CAT Assessment 1 had stopped after the December 2025 invoice cycle, before the full $212,039,879.34 industry-member amount was invoiced.

New

Historical CAT Assessment 1A seeks to invoice the remaining $38,964,855.34 to CAT Executing Brokers collectively.

modifiedFee rate and transaction basis confirmed for Assessment 1A

Previous

Historical CAT Assessment 1 used the earlier approved historical assessment framework but ceased before full recovery.

New

Assessment 1A applies the CAT Funding Model methodology to remaining Historical CAT Costs 1.

modifiedAffected broker population defined by CAT Executing Broker status

Previous

No TXSE-specific Historical CAT Assessment 1A fee was in place.

New

CEBBs and CEBSs identified in relevant CAT participant and TRF/ORF/ADF transaction data are in scope.

modifiedCost allocation limited to remaining Historical CAT Costs 1

Previous

Historical CAT Costs 1 total industry-member recovery target was $212,039,879.34, of which $173,075,024 had been invoiced.

New

CEBBs collectively are responsible for $19,482,427.67 and CEBSs collectively are responsible for $19,482,427.67 under Assessment 1A.

newScope exclusions preserved

Previous

Other CAT funding amounts would require separate filings under the CAT NMS Plan.

New

Assessment 1A is limited to the specified remaining Historical CAT Costs 1 amount.

Business Impact

Who is affected

Directly affected

Industry Members that are CAT Executing Brokers for the buyer side or seller side in transactions in Eligible Securities, including exchange-executed transactions and off-exchange transactions reported to FINRA TRF/ORF/ADF where identified in CAT Data.

Indirectly affected

clearing, finance, billing, client-chargeback, vendor, compliance, legal and trading operations teams that reconcile CAT invoices, allocate costs or manage any CAT fee pass-through to customers.

Jurisdictions

United States

Business processes

CAT fee invoice reconciliation, Broker-dealer fee accrual and general ledger allocation, Executed-equivalent-share volume validation, Customer or client fee pass-through governance, Exchange membership and SRO fee schedule monitoring, CAT Data quality controls for executing-broker identifiers

Estimated effort

Medium

Compliance risk

Medium

Affected Reports

CAT Historical CAT Assessment 1A invoice reconciliation controlCAT funding fee accrual and allocation workpaperCAT Data-to-billing validation control for exchange Equity Order Trade and Option Trade eventsCAT Data-to-billing validation control for FINRA TRF/ORF/ADF transaction data eventsCustomer CAT fee pass-through review and disclosure control, where the firm elects to pass through fees
FieldValidation rule
Equity Order Trade event: memberUsed in the CAT Participant Technical Specifications to identify the member firm responsible for the order on the relevant side of an exchange-executed equity trade; the filing references this field for identifying CAT Executing Brokers.
Option Trade event: memberUsed in the CAT Participant Technical Specifications to identify the member firm responsible for the order in an exchange-executed option trade; the filing references this field for identifying CAT Executing Brokers.
TRF/ORF/ADF Transaction Data Event: reportingExecutingMpidUsed in FINRA-submitted transaction data to identify the executing party for off-exchange transactions; the filing references this field for CAT Executing Broker identification.
TRF/ORF/ADF Transaction Data Event: contraExecutingMpidUsed in FINRA-submitted transaction data to identify the contra-side executing party; where no industry-member contra-side is identified, the executing broker may be treated as CAT Executing Broker for both buyer and seller under the CAT NMS Plan definition described in the filing.

Recommended Actions

6 suggested next steps· derived from source analysis
  1. 1
    AI generatedStep 1 of 6

    Map the firm’s CAT Executing Broker activity to CEBB and CEBS categories and quantify expected exposure using the $0.000002 rate and executed-equivalent-share methodology.

  2. 2
    AI generatedStep 2 of 6

    Update CAT fee accrual models and invoice-reconciliation procedures to identify Assessment 1A separately from any prospective CAT fee or future historical assessment.

  3. 3
    AI generatedStep 3 of 6

    Test billing data lineage from exchange EOT/OT and FINRA TRF/ORF/ADF fields to invoice allocations, focusing on MPID and member-alias attribution issues.

  4. 4
    AI generatedStep 4 of 6

    Review customer pass-through authority, disclosures and billing logic before passing through any CAT fee, because the SEC filing recognizes potential pass-through but does not prescribe a customer-billing method.

  5. 5
    AI generatedStep 5 of 6

    Monitor TXSE commencement of national securities exchange operations and TXSE fee schedule publications, because the filing states implementation occurs upon commencement of TXSE operations.

  6. 6
    AI generatedStep 6 of 6

    Track SEC comment-file updates and any suspension or proceedings under Exchange Act Section 19(b), even though the filing is immediately effective.

Timeline

other

Jul 11, 2012

SEC adopted Rule 613 of Regulation NMS, requiring SROs to submit an NMS plan to create, implement and maintain the Consolidated Audit Trail.

other

Nov 15, 2016

SEC approved the CAT NMS Plan.

other

Sep 5, 2025

CAT LLC proposed a revised CAT funding model.

other

Mar 16, 2026

SEC approved the CAT Funding Model that provides the framework for historical and prospective CAT cost recovery.

other

Jul 29, 2026

TXSE initially filed a related proposal as SR-TXSE-2026-016, later withdrawn and replaced by the instant filing.

effective date

Sep 2, 2026

TXSE filed SR-TXSE-2026-028 with immediate effectiveness.

publication

Sep 11, 2026

SEC published the notice soliciting comments on the TXSE proposed rule change.

Sources

AI-generated analysis is based on the following primary sources. Always verify against the official publication.

Related Evidence

Verified source support for this analysis

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