On March 28, 2016, the LSTA filed a motion with the US Court of Appeals for the District of Columbia (Court of Appeals) requesting an expedited transfer of its suit over Dodd-Frank risk retention rules to district court. The Court of Appeals granted the motion, and the case was transferred to the US District Court for the District of Columbia.

The motion was filed after the US Court of Appeals ruled on March 18, 2016 that it lacked statutory authorization to review the case, and that the case should be transferred to a lower court.

The LSTA filed its lawsuit against the Federal Reserve and SEC on November 10, 2014, seeking relief for collateralized loan obligation (CLO) managers from the final risk retention rules for asset-backed securities (ABS) issued under Section 941 of the Dodd-Frank Act (see Legal Update, LSTA Sues Federal Regulators over Risk Retention Rules for CLOs).

The LSTA waived its right to an en banc review by the entire court in order to avoid a 45-day grace period that would have resulted from that review.

The LSTA expects the district court to randomly assign a judge to the case in the next few days. The case faces a time crunch due to this delay since the CLO risk retention rules that are the subject of the lawsuit are scheduled to take effect in December of this year.

For details on the final Dodd-Frank risk retention rules, see Practice Note, ABS Risk Retention under Dodd-Frank.