According to the Court, “The Commission erred by failing to consider the economic impact the Short Sale Rule would have on the Securities Lending Rule when the Rules were promulgated in tandem and were adopted concurrently.
For the foregoing reasons, we GRANT the petition for review in part and REMAND the Securities Lending Rule and the Short Sale Rule to the Commission to allow the agency to consider and quantify the cumulative economic impact of the Rules, consistent with this opinion.”
The SEC will now need to review both the short selling and securities lending disclosure rules. No new reporting rules are currently in force and current timelines for adoption should be considered irrelevant for now.
The full Court order is available here.