07.25.25

Appeals Court Strikes Down SEC Rule on Audit Trail Funding

by: Douglas Gillison

A federal appeals court struck down a 2023 Securities and Exchange Commission (SEC) rule requiring stock exchanges to pass costs of the Consolidated Audit Trail (CAT) to members, calling the funding order "arbitrary and capricious." The court ruled the SEC failed to justify how CAT costs would be divided. The CAT, designed to enhance market oversight, has faced long delays and industry resistance.

Read the full article on Reuters