On June 16, 2020, the U.S. Court of Appeals for the District of
Columbia Circuit held that the Securities and Exchange Commission
("SEC") lacks the authority to administer a two-year
pilot program designed to review the fees and rebate structure used
by U.S. stock exchanges. As discussed in our previous article, major U.S.
exchanges, such as New York Stock Exchange, CBOE, Global Markets,
and Nasdaq sought review to challenge the pilot program. In New York Stock
Exchange LLC v. SEC, No. 19-1042 (D.C. Cir. Jun. 16,
2020), the Court sided with the exchanges, holding that the SEC
exceeded its authority by creating a program whose thrust was
merely to test whether the current pricing structure was
problematic.
