BOX Exchange sets 2026 CAT funding fee for executing brokers
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
BOX Exchange is adding a new Consolidated Audit Trail funding fee for industry members that execute securities transactions. From May 1 through December 31, 2026, CAT executing brokers on the buy side and sell side will be charged $0.000001 per executed equivalent share, with the first invoices expected in June 2026 based on May activity. The fee is meant to recover about two-thirds of CAT LLC’s budgeted costs for the eight-month period, with exchange participants covering the remaining one-third. Broker-dealers that execute trades in eligible securities should expect monthly CAT invoices and may need to update billing, cost allocation, and compliance budgeting processes.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Creates CAT Fee 2026-1 for industry members that act as CAT executing brokers.
- Sets the industry-member rate at $0.000001 per executed equivalent share for May through December 2026.
- Starts monthly invoicing in June 2026 based on May 2026 trading activity.
Obligations
What this law requires
CAT Executing Brokers for the Buyer (CEBBs) and CAT Executing Brokers for the Seller (CEBSs) must pay CAT Fee 2026-1 for each applicable transaction in Eligible Securities executed during the fee period.
CEBBs and CEBSs must pay a fee of $0.000001 per executed equivalent share under CAT Fee 2026-1.
CEBBs and CEBSs should expect their first monthly invoice for CAT Fee 2026-1 in June 2026, calculated based on May 2026 CAT executing broker activity.
For each month CAT Fee 2026-1 is in effect, each CEBB and CEBS must pay the fee based on executed equivalent shares from the prior month as reflected in CAT Data.
For exchange-executed transactions, the Industry Member responsible for the buy-side order and the Industry Member responsible for the sell-side order, as identified in CAT Data, are treated as CAT Executing Brokers subject to the fee.