The U.S. Securities and Exchange Commission (SEC) voted Wednesday to publish a proposed plan to create a single, comprehensive database to capture all of the trading activity in the U.S. equity and options market.

The plan for the database, known as the consolidated audit trail (CAT), was submitted jointly by U.S. self-regulatory organizations (SROs). The SROs include the Financial Industry Regulatory Authority (FINRA) and the national securities exchanges.

The proposal will go out for public comment once it is published in the Federal Register.

“The commission’s action to approve the proposed CAT plan for public comment is a major market structure milestone,” says Mary Jo White, SEC chairwoman, in a statement. “CAT will enable regulators to harness today’s technology to enhance the regulation and oversight of today’s trading markets. It will significantly increase the ability of regulators to conduct research, reconstruct market events, monitor market behavior, and identify and investigate misconduct.”

The proposed plan sets out how SROs and broker-dealers would record and report information to the database, and how the data would be maintained to ensure its accuracy, integrity and security.

Once it is formally published, the plan will go out for a 60-day comment period. If it is ultimately approved, the plan calls for SROs to begin reporting data to the central repository within one year; large broker-dealers would be required to begin reporting after two years; and smaller brokers would have three years.

The Securities and Financial Markets Association (SIFMA) supports the concept of a consolidated audit trail, the U.S. securities industry trade group says, but SIFMA stresses that regulators must ensure that it operates securely and cost effectively.

“The CAT will be a critical industry utility, and it should be designed to operate efficiently and comprehensively,” says Randy Snook, SIFMA executive vice president, business policies and practices, in a statement.

Snook notes that cyber threats have increased, so the system must have “robust protections” in place for the huge volume of sensitive transaction data it will capture. He adds that it should replace existing reporting systems, which would become redundant under the plan. As well, Snook flags possible concerns with the new system’s funding, governance, and implementation schedule.

“SIFMA will review this proposal in detail with our members and provide substantive comments in due course,” he says.