[World Corporate Law News] SEC Forms Cross-Border Task Force to Combat Fraud

World Corporate Law News provides a weekly snapshot of corporate law developments from around the globe. Here’s a glimpse of the key corporate law update this week.

1. Securities Law

1.1 SEC announces formation of Cross-Border Task Force to combat fraud

On September 5, 2025, the Securities and Exchange Commission (SEC) announced the formation of a task force that will strengthen and enhance the Division of Enforcement’s efforts to identify and combat cross-border fraud harming U.S. investors.

The Cross-Border Task Force will focus initially on investigating potential U.S. federal securities law violations related to foreign-based companies, including potential market manipulation, such as “pump-and-dump” and “ramp-and-dump” schemes. The task force also will focus enforcement efforts on gatekeepers, particularly auditors and underwriters, who help these companies access the U.S. capital markets.

Additionally, it will examine potential securities law violations related to companies from foreign jurisdictions, such as China, where governmental control and other factors pose unique risks to investors.

“We welcome companies from around the world seeking access to the U.S. capital markets,” said SEC Chairman Paul S. Atkins. “But we will not tolerate bad actors – whether companies, intermediaries, gatekeepers or exploitative traders – that attempt to use international borders to frustrate and avoid U.S. investor protections. This new task force will consolidate SEC investigative efforts and allow the SEC to use every available tool to combat transnational fraud.”

“I have also directed the staff in other SEC divisions and offices, including the Divisions of Corporation Finance, Examinations, Economic and Risk Analysis, and Trading and Markets, as well as the Office of International Affairs, to consider and recommend other actions that would better protect U.S. investors, including new disclosure guidance and any necessary rule changes,” continued Chairman Atkins.

Division of Enforcement Director Margaret A. Ryan said, “The Cross-Border Task Force will leverage the Division of Enforcement’s resources and expertise to combat international market manipulation and fraud. We are pleased to be part of this critical effort to enforce the federal securities laws and protect U.S. investors.”

Source – Press Release

2. Competition Law

2.1 FCA seeks views on proposals to provide fair access to the London Stock Exchange’s data centre rooftop

On September 5, 2025, the Financial Conduct Authority (FCA) seeks views on proposals to provide fair access to the London Stock Exchange’s data centre rooftop.

The FCA is investigating whether the London Stock Exchange Group (LSEG) and the landlord of the LSE data centre building have hindered competition for low-latency connectivity services (LLCS) between certain trading venues.
Currently, only LSEG can use the rooftop of the data centre building for radio equipment used for LLCS. To address our competition concerns, LSEG and the landlord have proposed to offer equal access to the rooftop to others.

LLCS providers build and operate high-speed connections between trading venues, enabling trading firms to process trades quickly. Offering very fast connections is key to competition, and to maximise the speed of their connections, providers must be able to place radio units close to trading venues.

To address our concerns, LSEG and the landlord have proposed:

(a) To end LSEG’s exclusive rights to the rooftop. In future, LSEG will only use part of that space for its equipment.
(b) To make an equivalent space on the rooftop available to third parties, on a fair and reasonable basis.

Further, in investigations under the Competition Act 1998 (CA98), a firm under investigation can offer commitments (that is, binding promises relating to its future conduct) to address the FCA’s concerns. The FCA has discretion on whether to accept commitments. If the FCA proposes to do so, it must be satisfied that the commitments offered address its competition concerns. The consultation runs from 11:00 a.m. on 5 September 2025 to 5:00 p.m. on 29 September 2025.

Source – Official Announcement