CTF Written Submission

Re: Amendments Regarding the Definition of “Exchange” (Release No. 34-97309, File No. S7-02-22), RIN 3235–AM45

Feb. 21, 2025
  • The amendments exceed the SEC's statutory authority by expanding the definition of "exchange" beyond what the statutory definition permits.
  • The amendments are arbitrary and capricious under the Administrative Procedure Act (APA) because they improperly expand the applicability of broker-dealer regulations rather than exchange regulations.
  • The required cost-benefit analysis is facially insufficient to withstand scrutiny, as the amendments fail to show that their benefits outweigh their costs.

Last Reviewed or Updated: April 3, 2025