When creating a PostGIS feature class in ArcCatalog, the xy offset is correctly created in respect to the spatial reference. When creating a PostGIS layer with command line and registering the feature class with sdelayer -o register, the xy offset is not calucated, preventing the feature class from being correctly displayed in ArcCatalog. The fix allows for a PostGIS layer to be displayed in ArcCatalog by calculating the xy offset regardless of how the feature class is created.