Securities Litigation and Enforcement: Appellate Review of SEC Administrative and SRO Decisions, New York Law Journal

In April of this year, the U.S. Court of Appeals for the Second Circuit vacated and remanded the sanction portion of a Securities and Exchange Commission (SEC) decision, which had upheld a New York Stock Exchange (NYSE) sanction of a floor broker. McCarthy v. SEC, 406 F3d 179 (2d Cir. 2005).

While the decision is not particularly novel and applies established law principles, it does remind us that the discretion of the SEC to sanction wrongdoers is subject to court scrutiny; and it affords a good opportunity to review and summarize the laws and regulations in this area.

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