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Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Establish Fees for Industry Members Related to Certain Historical Costs of the National Market System Plan Governing the Consolidated Audit Trail
Plain English Summary
The BOX Exchange has announced a new rule that establishes fees for industry members related to the costs of insurance for the Consolidated Audit Trail (CAT). This change affects companies involved in the CAT system, which tracks trading data for regulatory purposes. Starting in 2020, CAT LLC evaluated different insurance options and decided to purchase cyber security liability insurance and directors' insurance to cover potential risks. Insurance agents should be aware of these fees and the importance of these insurance policies in protecting against cybersecurity threats.
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(VII) <span class="match">Insurance</span>
The <span class="match">insurance</span> costs of $880,419 represent the cost incurred for <span class="match">insurance</span> for CAT during the Pre-FAM Period. Commencing in 2020, CAT LLC performed an evaluation of various potential alternatives for CAT <span class="match">insurance</span> policies, which included engaging in discussions with different <span class="match">insurance</span> companies and conducting cost comparisons of various alternative approaches to <span class="match">insurance</span>. Based on an analysis of a variety of factors, including coverage and premiums, CAT LLC determined to purchase cyber security liability <span class="match">insurance</span>, directors'