Hedge Funds Sue SEC Over Dealer Registration in Latest Salvo

Hedge funds launched another legal salvo against the Securities and Exchange Commission, this time over new rules requiring some firms to register as dealers in the US Treasuries market.

The Managed Funds Association, Alternative Investment Management Association and National Association of Private Fund Managers filed a lawsuit on Monday in federal court in Texas to block the SEC’s rules.

The regulator says its new rules approved last month will ensure high-frequency traders receive the same level of scrutiny as other firms. But, the hedge fund industry contends the regulation is too vague and could force them to spend excessively ...