Business Clock Synchronization

What this video covers

• How to decide whether the Consolidated Audit Trail (CAT) clock synchronization rule or the residual clock synchronization rule applies, and why the residual rule yields to CAT
• Why national market system (NMS) securities and over-the-counter (OTC) equity events fall under CAT, while debt securities are the key example handled by the residual rule
• Why CAT clocks generally require a 50-millisecond tolerance against the National Institute of Standards and Technology (NIST) atomic clock
• When the one-second CAT exception applies to clocks used solely for manual order events or solely for allocation times
• How the tolerance budget includes the clock difference, transmission delay, and clock drift, rather than adding delay and drift on top of the limit
• When clocks must be synchronized, checked, and resynchronized throughout the business day, and how the two rules differ on log retention
• Why a CAT violation must be reported to both the plan processor and the Financial Industry Regulatory Authority (FINRA), and how periodic certification differs from the residual rule