About RSMS for CAT
Capital Market Solutions (CMS) offers a comprehensive regulatory, compliance and reporting software solution called RSMS (Regulatory Surveillance & Monitoring System) specifically designed to help financial firms comply with the Consolidated Audit Trail (CAT) reporting requirements. RSMS provides a robust pre-submission validation engine that meticulously scrutinizes transaction data before it is submitted to the CAT system, ensuring the accuracy and integrity of the reported information.
The Case
A large retail firm, a client of CMS, utilizes the RSMS solution for its CAT reporting obligations. The firm’s internal Trading system, however, encountered an issue and produced a significant number of erroneous order and trade transactions that should not have been reported to CAT.
How RSMS Helped
The RSMS pre-submission CAT Validation engine played a crucial role in identifying these erroneous transactions before they were submitted to the FINRA CAT system. By detecting the “incorrect reporting” of transactions, RSMS allowed the firm to take immediate action to rectify the issue.
Without the RSMS pre-submission validation, the firm would have been obligated to notify FINRA regulators about the incident, which could have resulted in potential regulatory consequences. Moreover, correcting the incorrectly reported transactions to CAT would have taken the firm several days, potentially causing further compliance challenges.
The RSMS solution’s robust validation capabilities enabled the firm to identify erroneous transactions, take corrective measures, and reprocess the corrected transaction records before the 8 AM ET CAT submission deadline. This proactive approach ensured that the firm’s CAT reporting remained accurate and compliant, and avoided any regulatory concerns.
Conclusion
The case study highlights the value and importance of CMS’s RSMS solution in the context of CAT reporting. The pre-submission CAT Validation engine within RSMS proved to be a critical component in safeguarding the firm’s compliance and reporting obligations.
By detecting the “incorrect reporting” of transactions, RSMS allowed the firm to address the issue promptly, rectify the erroneous data, and resubmit the corrected information before the CAT reporting deadline. This prevented the firm from having to notify regulators and avoided potential regulatory consequences that could have arisen from submitting inaccurate or incomplete CAT data.
The case study underscores the effectiveness of CMS’s RSMS solution in helping financial firms navigate the complex and evolving CAT reporting landscape. By leveraging the advanced validation and monitoring features of RSMS, firms can ensure the accuracy and reliability of their CAT submissions, ultimately strengthening their overall regulatory compliance posture.