The U.S. Treasury can keep $159.8 million in leftover funds disgorged by seven specialist trading firms who admitted in a settlement with the Securities and Exchange Commission to interpositioning and trading ahead of client trades, a federal appeals court has ruled.
The U.S. Court of Appeals for the Second Circuit held that extra funds in a 2004 settlement between the firms and the SEC can go to the government because clients who have already been compensated with settlement funds lack Article III standing to sue.
