Another case challenging FINRA’s constitutionality has generated a District Court opinion upholding FINRA’s constitutionality.  Judge Reyes found that, Alpine “does not suggest that courts must enjoin every challenged FINRA enforcement action pending the Alpine merits decision.”

Kim differs from Alpine in some significant ways.  The plaintiff does not face expulsion, just an ordinary fine and disciplinary proceeding.  Kim faces a possible $30,000 fine and a requirement to disgorge $16,000 in profits.  This, unsurprisingly, complicates his attempt to secure an injunction against the enforcement action because it doesn’t seem as though he will face any irreparable harm–just “an enforcement hearing, months away, and most likely, monetary fines.”

The case also differs in that amici got involved at an early stage this time.  The opinion thanks “CBOE Global Markets, Inc.; CME Group Inc.; National Futures Association; and the Securities Exchanges.”  

Most courts will not be familiar with SROs.  Given that, it makes sense for a range of amici to come in on these cases to help give context to courts.

Ultimately, how this issue will turn out for Kim depends on the pending Alpine appeal.