The US Securities and Exchange Commission (SEC) withdrew its appeal of the decision by the US District Court for the Northern District of Texas vacating the Dealer Rule.
Jack Inglis, chief executive of the Alternative Investment Management Association (AIMA), said in a statement: “We welcome the news of the SEC withdrawing its appeal of the decision vacating the ill-advised Dealer Rule.
“Hedge funds managed by AIMA’s members are not dealers. They do not have customers – a requirement for determining whether a market participant is a dealer. The court affirmed this view when we challenged the rule last year. While today’s decision significantly reduces uncertainty and the potential for market disruption, we urge the Commission to review their existing enforcement practices with respect to the dealer definition so that they are consistent with the court’s ruling.”