As discussed in our January 9 client alert, SEC, CFTC implement plans for the government shutdown, and our January 16 update, Government shutdown's impact on SEC expands to administrative proceedings, as a result of the government shutdown, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have been engaged only in limited activities in accordance with the federal Antideficiency Act.
On January 25, President Trump signed a continuing resolution passed by both houses of Congress that provides funding for government operations until February 15, 2019.
As a result, on January 26, 2019, SEC Chairman Jay Clayton released a Statement Regarding Recommencement of Normal Operations, explaining that the leaders of each of the SEC's Divisions and Offices, in consultation with various members of the SEC staff, are assessing how to most effectively transition to normal operations. Chairman Clayton also said that certain SEC Divisions and Offices, including the Divisions of Corporation Finance, Trading and Markets, and Investment Management, and the Office of Compliance Inspections and Examinations, would publish statements regarding their transition plans.
These statements are now available:
The CFTC has not yet issued a statement with respect to resumption of its activities.
It is important to note that, as stated above, the continuing resolution provides funding for government operations only until February 15, after which another government shutdown is possible. That would result in the SEC and CFTC being required to once again limit their operations to those permitted under the Antideficiency Act.
For further information regarding the government shutdown and its effects on SEC and CFTC operations, please contact one of the authors or your usual DLA Piper contact.