Legal
SEC’s Market Surveillance Tool Called Unconstitutional in Texas Lawsuit
- Suit follows Citadel Securities-led challenge to SEC database
- Conservative think tank says investors’ privacy at stake
The Securities and Exchange Commission headquarters in Washington, DC.
Photographer: Graeme Sloan/BloombergThis article is for subscribers only.
The US Securities and Exchange Commission was sued by a conservative think tank and a pair of individual investors who claim the regulator’s new market surveillance tool violates their constitutional privacy rights.
Filed Tuesday in federal court in Waco, Texas, the suit led by the National Center for Public Policy Research accuses the SEC of acting without authority to create the Consolidated Audit Trail, a database intended to collect virtually all US trading data.