United States Second Circuit

In an antitrust action by a short seller against "prime brokers" in short sale transactions alleging that the prime brokers arbitrarily designated certain securities as "hard to borrow" and then fixed the price for borrowing them, dismissal of the complaint is affirmed where federal securities law implicitly precluded application of the antitrust law to the alleged anticompetitive conduct.

Appellate Information

• Decided 12/03/2009
• Published 12/03/2009

Judges

• DENNIS JACOBS, Chief Judge:, Before:  JACOBS, Chief Judge, SACK and LYNCH, Circuit Judges.

Court

• United States Second Circuit

Counsel

• For Appellant:
  
• Andrew J. Entwistle, Vincent R. Cappucci, Harold F. McGuire, Jr., Arthur V. Nealon, and Stephen D. Oestreich, Entwistle & Cappucci LLP, New York, NY, for Appellant Electronic Trading Group, LLC.


• For Appellees:
  
• Robert F. Wise, Jr., and William J. Fenrich, Davis Polk & Wardwell LLP, New York, NY, for Appellees Morgan Stanley & Co. Incorporated and Morgan Stanley DW Inc., Richard H. Klapper and Richard C. Pepperman, II, Sullivan & Cromwell LLP, New York, NY, for Appellees Goldman, Sachs & Co., Goldman Sachs Execution & Clearing, L.P., and the Goldman Sachs Group, Inc., Stephen L. Ratner and Harry Frischer, Proskauer Rose LLP, New York, NY, for Appellee Bear Stearns Companies, Inc., Jay B. Kasner and Shepard Goldfein, Skadden, Arps, Slate, Meagher & Flom LLP, New York, NY, for Appellee Merrill Lynch, Pierce, Fenner & Smith Incorporated., Jay P. Lefkowitz, Maria Ginzburg, Andrew B. Clubok, Susan E. Engel, And EleanorR. Barrett, Kirkland & Ellis LLP, New York, N.Y. and Washington, DC, for Appellee UBS Financial Services, Inc., Robert B. McCaw, Fraser L. Hunter, Jr., and Ali M. Stoeppelwerth, Wilmer Cutler Pickering Hale and Dorr LLP, New York, N.Y. and Washington, DC, for Appellees Citigroup Inc., Citigroup Global Markets, Inc., Credit Suisse (USA) Inc., and Credit Suisse Securities (USA) LLC., Andrew J. Frackman and Brendan J. Dowd, O'Melveny & Myers LLP, New York, NY, for Appellee Banc of America Securities LLC., Gregory A. Markel and Martin L. Seidel, Cadwalader, Wickersham & Taft LLP, New York, NY, for Appellee Deutsche Bank Securities, Inc., Daniel B. Rapport, Katherine L. Pringle, and Lisa S. Getson, Friedman Kaplan Seiler & Adelman LLP, New York, NY, for Appellee Van Der Moolen Specialists USA, LLC., Jonathan D. Polkes, Robert F. Carangelo, and Debra J. Pearlstein, Weil, Gotshal & Manges LLP, New York, NY, for Appellee CIBC World Markets Corp.