Citadel Loses Bid to Pause Fees for SEC Market Surveillance Tool

The US Securities and Exchange Commission can proceed with funding a new tool for surveilling trades in equity markets through fees assessed on broker-dealers while a federal appeals court reviews a bid from Wall Street giants to cancel the market-monitoring database.

The US Court of Appeals for the Eleventh Circuit on Wednesday denied a time-sensitive motion by Ken Griffin’s Citadel Securities LLC and the American Securities Association to block the SEC and self-regulatory organizations from collecting the fees to fund the tool, called the Consolidated Audit Trail.

The order said one member of the Eleventh Circuit panel dissented and would ...