Allen & Overy files amicus brief in 5th Circuit in support of challenge to SEC short-selling and securities lending rules

The brief  contends that the simultaneously adopted short-selling rule and securities lending rule regulate substantially the same financial market activity albeit in a materially contradictory manner, in violation of both the Administrative Procedure Act and the agency’s cost-benefit analysis obligations under the Securities Exchange Act of 1934. The brief requested the panel of the Fifth Circuit to invalidate the SEC’s final rules as “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.”