SEC must review Short Sale and Securities Lending Rules following AIMA's legal challenge
Published: 25 August 2025
The US Fifth Circuit has this week sent the US SEC’s Securities Lending and Short Sale Rules back to the Commission, agreeing with the plaintiffs, including AIMA, that the US SEC did not conduct a proper cumulative economic analysis when adopting conflicting disclosure requirements on the same day.
AIMA, the world’s largest alternative investment trade body, along with two other trade associations, challenged both rules in December 2023, arguing that they represent a stark example of arbitrary and capricious rulemaking.
AIMA CEO Jack Inglis said: “The result rightfully recognises that the SEC failed to consider and quantify the cumulative economic impact of rules that were adopted on the very same day with conflicting disclosure regimes. We look forward to working with the Commission and SEC staff as they consider next steps.”