Citadel Securities, trade body sue US SEC over ‘consolidated audit trail’ By Reuters

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<p>(Reuters) -Citadel Securities and the American Securities Association, a trade group, announced on Tuesday that they are suing Wall Street&#8217;s top regulator over new rules on the funding of a comprehensive market data surveillance system.</p>
<p>The litigation, brought before the U.S. Court of Appeals for the 11th Circuit in Atlanta, escalates the investment industry&#8217;s battle with the U.S. Securities and Exchange Commission over the so-called Consolidated Audit Trail (CAT).</p>
<p>&#8220;The SEC has overstepped its statutory authority and failed to address investor and industry concerns, leaving us no choice but to litigate,&#8221; the ASA said in a statement.</p>
<p>The SEC last month adopted new rules aimed at splitting the cost for operating the new system among sellers, buyers and stock exchanges where they trade.</p>
<p>This drew objections from the investment industry, which complained its members could be left to pay an unfairly large share of the resulting cost.</p>
<p>An SEC spokesperson said the agency acted within the law.</p>
<p>&#8220;The Commission undertakes its regulatory responsibilities consistent with its authorities,&#8221; the spokesperson said.</p>
<p>The CAT is a repository of investor and transaction data meant to give regulators all-encompassing insight into U.S. market transactions.</p>
<p>The SEC mandated the CAT&#8217;s creation in 2012 as a response to the &#8220;flash crash&#8221; two years earlier, when a sudden plunge on major Wall Street indices temporarily erased nearly $1 trillion in market value.</p>
<p>Republican officials and industry representatives have said the system presents cybersecurity and privacy risks and is likely to pass undue costs on to investors.</p>
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<br /><a href="https://www.investing.com/news/stock-market-news/citadel-securities-trade-body-sue-us-sec-over-consolidated-audit-trail-3201372">Source link </a></p><p>The post <a href="https://forextraderhub.com/citadel-securities-trade-body-sue-us-sec-over-consolidated-audit-trail-by-reuters.html">Citadel Securities, trade body sue US SEC over ‘consolidated audit trail’ By Reuters</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>