AIMA CEO reacts to SEC appeal of Dealer Rule ruling
Published: 17 January 2025
Last Friday, the SEC filed an appeal to the recent court ruling by US District Judge Reed O’Connor, which confirmed our argument that the Dealer Rule was unlawful and must be fully vacated.
From today, the acting chair, or Paul Atkins – once in office – can choose to pursue or scrap the appeal.
Commenting on the SEC's decision to appeal the ruling, AIMA CEO Jack Inglis said:
"Hedge funds managed by AIMA's members are not dealers. They do not have customers – a requirement for determining whether a market participant is indeed a dealer. The District Court affirmed this view when we challenged the rule last year. It found that the SEC exceeded its statutory authority by adopting the Dealer Rule and vacated it in its entirety. We are disappointed in the SEC's eleventh-hour decision to appeal; however, we are confident in our arguments and look forward to working with the new SEC leadership to reconsider this decision."