US appeals court strikes down SEC rule on 'audit trail' funding
The unanimous decision represented another blow to SEC regulations adopted under the previous Biden administration, which faced concerted opposition from industry and Republican lawmakers. It was also a setback for the Consolidated Audit Trail, a repository of investor and transaction data meant to give regulators overarching visibility into U.S. market operations, but which has faced delays and obstacles for more than a decade.
The American Securities Association and Citadel Securities, which brought the lawsuit, both hailed the outcome.
The ruling "prevents a tax hike on every American investor who buys or sells a share of stock," ASA President Chris Iacovella said in a statement.
The SEC did not immediately respond to requests for comment.
Over the objections of its Republican members, the SEC in 2023 split the operating costs among buyers, sellers, and exchanges. Officials said at the time this would divide costs evenly but also allow exchanges several years to recoup hundreds of millions already spent.
This drew stiff objections from the investment industry, which said it could be left paying an unfairly large share. The two Republicans are now part of the five-member commission's controlling majority.
In an opinion for a three-judge panel of the U.S. Court of Appeals for 11th Circuit, Circuit Judge Andrew Brasher said that, because the SEC had not advanced a sufficient justification in deciding how the system's cost would fall on different actors in the marketplace, "we conclude that the 2023 Funding Order is arbitrary and capricious" and therefore in violation of federal laws governing the crafting of regulations.
The appeals court sent the rule back to the SEC for further processing in line with the court's decision.
The SEC mandated the CAT's creation in 2012 as a response to the "flash crash" of 2010 when major Wall Street indexes temporarily erased nearly $1 trillion in market value in a matter of minutes. Officials say it can allow regulators to spot market manipulation and have cited its data in enforcement actions.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Rhyl Journal
14 minutes ago
- Rhyl Journal
Irish premier welcomes trade deal between EU and US
The deal was reached during a meeting between Donald Trump and the president of the European Commission on Sunday. The US president met European Commission president Ursula von der Leyen to hammer out the final details on the trading relationship between Europe and the US. Reacting to the deal, Taoiseach Micheal Martin said the agreement was very welcome. I welcome the outcome of trade talks today between the European Commission and the US. — Micheál Martin (@MichealMartinTD) July 27, 2025 'It brings clarity and predictability to the trading relationship between the EU and the US – the biggest in the world,' the Fianna Fail leader said. 'That is good for businesses, investors and consumers. It will help protect many jobs in Ireland. 'The negotiations to get us to this point have been long and complex, and I would like to thank both teams for their patient work. 'We will now study the detail of what has been agreed, including its implications for businesses exporting from Ireland to the US, and for different sectors operating here. 'The agreement is a framework and there will be more detail to be fleshed out in the weeks and months ahead.' Mr Martin said the higher tariffs will have an impact on trade between the EU and the US, which will make it more expensive and more challenging. 'However, it also creates a new era of stability that can hopefully contribute to a growing and deepening relationship between the EU and the US, which is important not just for the EU and the US, but for the global economy,' he added. 'Given the very real risk that existed for escalation and for the imposition of punitively high tariffs, this news will be welcomed by many.' The deal was also welcomed by deputy Irish premier and Minister for Foreign Affairs and Trade Simon Harris, who said it brings clarity to businesses. 'While we have yet to see the detail, I welcome that an agreement has been announced by Commission President von der Leyen and US President Trump,' Mr Harris said in a statement. 'A deal provides a measure of much-needed certainty for Irish, European and American businesses who together represent the most integrated trading relationship in the world. Ireland makes a key contribution to this with the Ireland-US economic relationship valued at more than one trillion euros. 'The US had made clear, and this has been replicated in other recent agreements, which the US has reached with other countries, that a baseline tariff was always going to be part of the outcome. 'I have always stressed that tariffs are damaging and will have a negative impact on companies exporting to the US. 'While Ireland regrets that the baseline tariff of 15% is included in the agreement, it is important that we now have more certainty on the foundations for the EU-US trade relationship, which is essential for jobs, growth and investment. 'President von der Leyen described this as 15% tariffs across the board, all-inclusive.' He said further detail is needed around pharma, aviation and other sectors. Mr Harris said he will examine the details of the agreement over the coming days to establish the effect on Irish businesses and the economy. Earlier, EU commissioner Michael McGrath said the meeting was a 'significant and decisive moment'. Mr McGrath, EU Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, said it would involve substantive negotiations between both sides. 'It's a significant moment, we hope a decisive moment, and it builds on an enormous amount of work that has been done over quite a period of time,' Mr McGrath said ahead of the meeting. 'President Trump invited President von der Leyen to Scotland for a meeting. 'This follows on the back of intensive negotiations over a number of months. He added: 'It is not a case of turning up and signing on the dotted line. There will be a real discussion that will happen, and it will take on a dynamic of its own, and let's see what happens over the course of the afternoon. 'But from the EU's point of view, we are determined to do all that we can to get a deal for European businesses, because we recognise the cost of uncertainty. 'It manifests in trade and in investment decisions and ultimately in employment and of course tariffs can cost consumers at the end of the day. 'We want a good deal. We have negotiated hard, and we're at a point now where hopefully the two leaders can today bring it to a concluding phase.'
Rhyl Journal
20 minutes ago
- Rhyl Journal
Trump and von der Leyen agree EU-US deal on US President's Scotland visit
The bloc will face 15% tariffs on most of its goods including cars, semiconductors and pharmaceuticals entering America rather than a 30% levy previously threatened by the US President. President of the EU Commission Ursula von der Leyen said the agreement would provide 'certainty in uncertain times' for citizens and businesses, while Mr Trump hailed what he described as the 'biggest deal ever made'. They also agreed 'zero for zero' tariffs on a number of products including aircraft, some agricultural goods and certain chemicals, Ms von der Leyen said. The two leaders met at the US President's Turnberry golf resort in Ayrshire on Sunday to hammer out the broad terms of the agreement, the detail of which is due to be fleshed out in the coming weeks. Before their bilateral talks, which lasted around an hour, Mr Trump had said there was a '50-50' chance of the deal being reached as a number of the sticking points remained. Following the meeting, he said: 'I think it's great that we made a deal today instead of playing games and maybe not making a deal at all … I think it's the biggest deal ever made.' Ms von der Leyen said: 'Today's deal creates certainty in uncertain times, it delivers stability and predictability for citizens on both sides of the Atlantic.' Irish Taoiseach Micheal Martin welcomed the 'clarity' the agreement brought to the transatlantic trade relationship and said the implications for exports from Ireland would be studied in the coming days. Together, the EU and the US are a market of 800 million people. And nearly 44 percent of global GDP. It's the biggest trade deal ever ↓ — Ursula von der Leyen (@vonderleyen) July 27, 2025 'That is good for businesses, investors and consumers. It will help protect many jobs in Ireland,' he said. 'The negotiations to get us to this point have been long and complex, and I would like to thank both teams for their patient work. 'We will now study the detail of what has been agreed, including its implications for businesses exporting from Ireland to the US, and for different sectors operating here.' The development on Sunday evening looks to have averted the prospect of transatlantic trade war amid concerns that US tariff rates could damage the world economy. However, uncertainty remains over American levies on steel, which Mr Trump has suggested remains subject to a rate of 50%.
South Wales Argus
20 minutes ago
- South Wales Argus
Trump and von der Leyen agree EU-US deal on US President's Scotland visit
The bloc will face 15% tariffs on most of its goods including cars, semiconductors and pharmaceuticals entering America rather than a 30% levy previously threatened by the US President. President of the EU Commission Ursula von der Leyen said the agreement would provide 'certainty in uncertain times' for citizens and businesses, while Mr Trump hailed what he described as the 'biggest deal ever made'. They also agreed 'zero for zero' tariffs on a number of products including aircraft, some agricultural goods and certain chemicals, Ms von der Leyen said. The two leaders met at the US President's Turnberry golf resort in Ayrshire on Sunday to hammer out the broad terms of the agreement, the detail of which is due to be fleshed out in the coming weeks. Before their bilateral talks, which lasted around an hour, Mr Trump had said there was a '50-50' chance of the deal being reached as a number of the sticking points remained. Following the meeting, he said: 'I think it's great that we made a deal today instead of playing games and maybe not making a deal at all … I think it's the biggest deal ever made.' Ms von der Leyen said: 'Today's deal creates certainty in uncertain times, it delivers stability and predictability for citizens on both sides of the Atlantic.' Irish Taoiseach Micheal Martin welcomed the 'clarity' the agreement brought to the transatlantic trade relationship and said the implications for exports from Ireland would be studied in the coming days. Together, the EU and the US are a market of 800 million people. And nearly 44 percent of global GDP. It's the biggest trade deal ever ↓ — Ursula von der Leyen (@vonderleyen) July 27, 2025 'That is good for businesses, investors and consumers. It will help protect many jobs in Ireland,' he said. 'The negotiations to get us to this point have been long and complex, and I would like to thank both teams for their patient work. 'We will now study the detail of what has been agreed, including its implications for businesses exporting from Ireland to the US, and for different sectors operating here.' The development on Sunday evening looks to have averted the prospect of transatlantic trade war amid concerns that US tariff rates could damage the world economy. However, uncertainty remains over American levies on steel, which Mr Trump has suggested remains subject to a rate of 50%.
