Analysis of the Court decision to halt US SEC short selling and securities lending rules

The decision by the United States Court of Appeals for the Fifth Circuit on the US Securities and Exchange Commission’s (SEC) recent rules on securities lending reporting (10c-1) and short selling reporting (13f-2) agreed with most elements of a lawsuit brought by industry associations. This is a win for proponents of less regulation and benefits financial markets without much downside for financial stability. We analyze the rules, the lawsuit and what could happen next.
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