Judge Tosses SEC Treasury Dealer Rule in Hedge Fund Win (2)

The Securities and Exchange Commission suffered another setback in efforts to tighten its oversight of Wall Street, after a federal judge in Texas struck down new rules that would have required some firms to register as dealers in the US Treasuries market.

US District Judge Reed O’Connor in Fort Worth sided with hedge funds that sued in March to block the regulations, which they claimed were too broad and could harm the market by causing some firms to pull back from trading. The SEC “engaged in unlawful agency action taken in excess of its authority,” O’Connor said in the ruling ...