04.16.24
SEC’s Market Surveillance Tool Called Unconstitutional in Texas Lawsuit
by: Chris Dolmetsch and Madlin Mekelburg
The U.S. Securities and Exchange Commission (SEC) was sued by a conservative think tank and a pair of individual investors who claim the regulator’s new market surveillance tool violates their constitutional privacy rights. The suit led by the National Center for Public Policy Research accuses the SEC of acting without authority to create the Consolidated Audit Trail, a database intended to collect virtually all U.S. trading data. The suit, which is asking to have the CAT declared void and its databases expunged, follows a legal challenge to the project filed in October by Citadel Securities and the American Securities Association, which focuses more on the SEC's funding model for the CAT but also highlights privacy concerns.
Read the full article on Bloomberg