NEWS FROM THE NCLA: The New Civil Liberties Alliance’s Peggy Little will take oral argument before the Fifth Circiut today regarding the FCC’s illegal diversity rules.

NCLA’s client, the National Center for Public Policy Research, which owns shares in many Nasdaq companies, argues that SEC has no power to regulate in this field because the rules have nothing to do with fraud or honest markets.

The diversity rules fall outside of SEC’s regulatory authority under the 1934 Securities and Exchange Act, which empowered SEC to regulate securities to ensure honest markets and enforce federal laws that punish fraud. These longstanding laws are being misinterpreted today by SEC to allow the agency, working with Nasdaq, to impose a “meet quota, explain why, or get delisted” regime.

Oral argument begins at 9 AM, and you can listen to it here.

Also: In NCLA Amicus Win, and FTC Amicus Loss, Second Circuit Upholds Decision Dismissing Antitrust Suit.

Reminder/disclosure: I’m on the NCLA’s Advisory Board.