D.C. Circuit Raises the Bar on SEC Review of SRO Rule Filings—May Further Slow Pace of Agency Actions
Client Memorandum

Created date


A recent decision by the D.C. Circuit Court of Appeals effectively raises the standard for SEC review and approval of rule change filings submitted by national securities exchanges, FINRA, and registered clearing agencies.  This decision could materially slow down a process that is a critical path for most self-regulatory organization business and regulatory initiatives.  It could also embolden market participants who believe that they may be negatively affected by an SRO’s rule change to challenge the SEC’s approval on procedural grounds.