SEC Stock Buyback Rule Should Be Tossed, Business Groups Contend

An SEC rule aimed at preventing corporate insiders from initiating stock buybacks for their own benefit is fatally flawed, the US Chamber of Commerce and two other business groups told the Fifth Circuit.

The US Chamber, the Texas Association of Business, and a Longview, Tex., chamber of commerce are asking the US Court of Appeals for the Fifth Circuit to review the Securities and Exchange Commission rule. They want the court to vacate the measure’s requirements that companies provide daily buyback data for each quarter and disclose the rationales for each stock repurchase.

The SEC “has imagined a problem that ...