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  • Writer's pictureASA Newsroom

ASA & Citadel Securities File Lawsuit Against SEC Challenging Consolidated Audit Trail

WASHINGTON, D.C. – Today, the American Securities Association (ASA), a trade association representing the retail and institutional capital markets interests of America’s financial services firms, joined Citadel Securities in petitioning the United States Court of Appeals for the Eleventh Circuit to review the U. S. Securities and Exchange Commission’s (SEC) approval of a Consolidated Audit Trail (CAT) Order. The petitioners are represented by Jones Day and Consovoy & McCarthy, respectively.

“The American Securities Association and Citadel Securities have jointly petitioned the Eleventh Circuit to review the SEC’s implementation of the Consolidated Audit Trail, in response to widespread investor concerns about transparency, governance, costs, and data privacy. The SEC has overstepped its statutory authority and failed to address investor and industry concerns, leaving us no choice but to litigate.”

In September 2023, ASA issued a statement about the SEC’s adoption of the CAT funding model. ASA also submitted a comment letter to the SEC on the Proposed Order.

ASA has, for years, been a leading advocate against the CAT and its collection of the personal and financial information of every American investor. ASA applauded the bicameral introduction of legislation protecting the privacy rights of American investors, as well as an Attorneys General letter to Congress urging the protection of investor privacy.

Throughout the 118th Congress, ASA has worked with Members of Congress and U.S. Senators on the CAT’s cybersecurity and investor privacy concerns. The ASA has worked with members of the House Financial Services Committee and the Senate Banking, Housing, and Urban Affairs Committee to advocate for the removal of personal and financial information from the CAT.

Last month, the Wall Street Journal published an op-ed expressing concerns about the CAT and its collection of the personal and financial information of every American investor.

The petition for review can be found here.


About the American Securities Association

American Securities Association, based in Washington, DC, represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.

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