SEC Rethinks Market Surveillance Tool Some Investors Want to Axe
A controversial system to monitor Wall Street trading under development since the Obama administration is at a critical juncture, as SEC Chairman Paul Atkins attempts to rework the market surveillance tool and some plaintiffs push to abolish it entirely.
The Securities and Exchange Commission this month moved to pause litigation challenging its Consolidated Audit Trail, first proposed following the 2010 “flash crash” that wiped out $1 trillion in market value…
“No action taken by the SEC can cure the CAT’s structural and liberty-invading constitutional defects,” said Peggy Little, senior litigation counsel at the New Civil Liberties Alliance who represents the plaintiffs. “Neither the SEC’s original motion nor its reply suggests that it plans to terminate the CAT.”
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June 26, 2025
Originally Published in Bloomberg Law