What are Consolidated Audit Trails (CAT) Fees?

A trading fee assessed on customer trade activity in stocks and options charged to cover a regulatory fee.

The CAT Fee is a fee mandated by FINRA and charged to executing brokers. The fee supports the operation and maintenance of the Consolidated Audit Trail (CAT) system.

The CAT system was built to provide regulators with a comprehensive view of market activities, making it easier to detect, investigate, and prevent market manipulation, fraud, and other suspicious activities. It enables the SEC and other regulatory bodies to track the entire lifecycle of trades across multiple trading platforms. The FINRA CAT Fee is based on transaction volume and applies to equity and options trading activities.

Many broker-dealers, including Webull, pass the fee to customers.

For more information, please visit https://www.catnmsplan.com/