CAT funding plan struck down by US appeals court
The 11th Circuit court ruled that the SEC had not established a sufficient precedent to pass the costs of the Consolidated Audit Trail on to broker-dealers.
A US federal appeals court struck down the Securities and Exchange Commission’s (SEC’s) funding plan for the Consolidated Audit Trail (CAT) on Friday, July 25, in a decision that is set to heap more pressure on the US regulator.
The unanimous decision from the 11th Circuit’s three-judge panel stated that the SEC lacked a sufficient basis for allowing stock exchanges to pass on the cost of the database to their members. The ruling stems from two lawsuits filed by market-maker Citadel Securities
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