(DOWNLOAD) "Brawer v. Options Clearing Corp." by United States Court of Appeals for the Second Circuit # eBook PDF Kindle ePub Free
eBook details
- Title: Brawer v. Options Clearing Corp.
- Author : United States Court of Appeals for the Second Circuit
- Release Date : January 11, 1986
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 66 KB
Description
BEFORE LUMBARD, CARDAMONE, and PIERCE, Circuit Judges LUMBARD, Circuit Judge: Leonard Brawer appeals from a judgment dismissing his complaint against defendants The Options Clearing Corporation (OCC) and American Stock Exchange, Inc. (AMEX) entered in the Southern District by Judge Louis L. Stanton on April 29, 1986. Brawer's complaint alleges that OCC and AMEX violated §Â§ 6(b), 17A(b)(3), and 19(g)(1) of the Securities Exchange Act of 1934, as amended (the Act), 15 U.S.C. §Â§ 78f(b), 78q-1(b)(3), and 78s(g)(1) respectively,1 by failing to comply with their own rules. The district court, in an opinion reported at 633 F. Supp. 1254, dismissed the complaint, concluding that Brawer lacked a private right of action. OCC and AMEX, in a joint brief, argue that the district court should be affirmed either on the ground that Brawer failed to allege fraud or bad faith in his complaint. The Securities and Exchange Commission (SEC) also submits an amicus brief which urges affirmance on the latter ground. Agreeing with this position, we affirm and hold that private cause of action against an exchange or a clearinghouse for failure to comply with one of its rules which requires an exercise of discretion, if one exists at all, may be brought only if it is premised upon allegations of fraud or bad faith.2