Private Clearing Regulator Sheds Broker’s Power Challenge (1)

Brokerage Alpine Securities Corp. lost its bid to challenge the National Securities Clearing Corp.'s disciplinary power and refined “excess net capital” requirements, a federal judge ruled.

Alpine failed to adequately allege that the NSCC and its parent organization are a government entity and so the brokerage didn’t state a sufficient claim under the separation-of-powers principle and other legal doctrines, Judge Jill N. Parrish said Tuesday for the US District Court for the District of Utah. The judge dismissed most of the suit’s claims without leaving the ability to refile.

Alpine sued NSCC, which offers clearing, settlement, and risk management ...