Gauging SEC Short-Sale Rules' Future After 5th Circ. Remand

Partner Scott Budlong wrote an expert analysis column, "Gauging SEC Short-Sale Rules' Future After 5th Circ. Remand," published in Law360. The article examines the Fifth Circuit's August 2025 remand of two SEC rules requiring disclosure of securities lending and short-sale activity and explores how the SEC may respond to the court's directive to analyze the rules' cumulative economic impact, among other topics.

“In light of the rules’ interlinked reporting regimes and potential risk to short sellers, many commenters emphasized the need for the SEC to align the rules' respective disclosure requirements as to both substance and timing, and to demonstrate that the rules' combined costs were justified,” writes Scott.