[ by Howard Haykin ] The SEC adopted Rule 613, which establishes the Consolidated Audit Trail, or CAT, by a 3:2 vote.  Chairman Mary Schapiro, along with Commissioners Troy Paredes and Daniel Gallagher voted for adoption;  Commissioners Luis Aguilar and Elisse Walter voted against. These dissenting votes are unusual, because the Democratic Commissioners usually vote alongside the Chairman.  Nevertheless, here are their reasons: Commissioner Luis Aguilar. Mr. Aguilar is a consistent and vocal supporter of a CAT - just not this CAT.  The SEC first called for a comprehensive market oversight surveillance system back in 1980.  Yet, while there's been enormous growth in the capital markets over the past 30 years, the SEC still does not have access to comprehensive market data. Finally, there a rule proposal that would rectify that limitation, however, according to Aguilar, the first steps in this plan are flawed - the system will not be comprehensive because it does not include both regulated and unregulated markets. Rather than all the SROs submitting a single plan, Aguilar would prefer to have them submit competing plans which the Commission can compare and choose the best.  He quotes President Reagan who said, "excellence demands competition." Commissioner Elisse Walter. She too wholeheartedly supports creation of a consolidated audit trail.  Although the current version of Rule 613 presents a positive step forward, she dissents from its adoption because an overly cautious approach has guided the drafting of this rule, and it "falls far short of where we need to be in terms of bringing market oversight into the 21st century." Having taken 3 years to get to the 'adopting stage', Walter says it will take several more years before any CAT system is finally in pace.  No one truly knows what technology will allow several years in the future, yet the rule prohibits submission of trading data before 8 a.m. the following trade date.  [C-I Note: The SEC had sought real time submissions, but didn't just compromise on this issue, it left no room for adopting real time reporting in future years, even if the capability is there.] Additionally, the SEC has opted to take an unprecedented multi-step approach to the economic analysis of this rule - a process that is normally completed when the SEC adopts a rule.  Further, the system should be built with a view to eventual expansion to include additional instruments - OTC equities, fixed income and futures.  But that doesn't seem to be in the requirements. For Commissioner Aguilar's complete dissenting statement, go to:  [SEC Speech, "Smart Regulation: Keeping the Door Open for Effective Ideas"]. For Commissioner Walter's complete dissenting statement, go to:  [SEC Speech, "Opening Remarks Re: Adoption of Final Rules for the Consolidated Audit Trail"].