Clock Synchronization for CAT Plan Still Lacking, Sources Say

Questions remain about whether the current clock drift between exchanges and broker-dealers will allow for accurate data.

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The US Securities and Exchange Commission (SEC) made several revisions to the national market system (NMS) plan for the Consolidated Audit Trail (CAT) before approving it in November, but many involved in the CAT process feel regulators didn't go far enough with certain aspects. As it stands now, self-regulatory organizations' (SROs') business clocks are required to be within 100 microseconds of the time maintained by the National Institute of Standards and Technology (NIST). Broker-dealers,