About RSMS for CAT
Capital Market Solutions (CMS) is a leading provider of regulatory, compliance, and reporting software solutions for financial institutions. One of their flagship offerings is the Regulatory Submission Management System (RSMS), which is designed to help firms comply with various regulatory requirements, including the Consolidated Audit Trail (CAT) reporting.
The CAT is a comprehensive regulatory reporting system that tracks the life cycle of every equity and options trade executed in the U.S. financial markets. It is designed to enhance regulators’ ability to monitor and analyze trading activity, detect market manipulation and other improper behavior, and reconstruct market events.
CMS’s RSMS solution for CAT reporting provides a comprehensive platform for firms to manage their CAT reporting requirements. The solution includes pre-submission CAT Analytics and CAT Recon tools that help firms track the daily count of CAT reporting records against the 5-day and 30-day averages, ensuring that any anomalies in reporting volume are identified and addressed before the submission deadline.
The Case
A mid-size institutional firm was utilizing CMS’s RSMS solution for its CAT reporting. The firm’s CAT reporting volume was significantly lower than the average trading day, raising concerns about potential “under-reporting” of transactions.
How RSMS Helped
The RSMS solution’s pre-submission CATAnalytics and CATRecon tools played a crucial role in identifying the anomaly in the firm’s CAT reporting volume. By tracking the daily count of CAT reporting records against the 5-day and 30-day averages, the RSMS system was able to detect the discrepancy and alert the firm’s support team.
This early detection allowed the firm to investigate the issue and take immediate action to provide the missing transactions before 8 a.m. ET CAT submission deadline. Had the firm not had the RSMS solution in place, they would have been exposed to potential regulatory inquiries from the Financial Industry Regulatory Authority (FINRA) about the “under-reporting” incident and their Written Supervisory Procedures (WSP).
Conclusion
The case study highlights the importance of having a comprehensive regulatory reporting solution like CMS’s RSMS for CAT reporting. The pre-submission CAT Analytics and CAT Recon tools provided by RSMS enabled the mid-size institutional firm to proactively identify and address any issues with their CAT reporting, avoiding potential regulatory scrutiny and ensuring compliance with the CAT reporting requirements.
The RSMS solution’s ability to detect anomalies in reporting volume and alert the firm’s support team on time demonstrates the value it can provide in ensuring accurate and compliant CAT reporting.
Overall, this case study underscores the critical role that innovative and comprehensive regulatory reporting solutions like CMS’s RSMS can play in helping financial institutions meet their regulatory obligations and maintain the integrity of the financial markets.