Securities and Exchange Commission v. Virtu Financial Inc.

Background

Virtu Financial Inc. and Virtu Americas LLC, referred to together in the application as Virtu, requested permission to file four exhibits under seal in support of their motion to dismiss the amended complaint. The exhibits were attached to a declaration supporting that motion.

The application stated that Virtu had previously sought to seal the same exhibits in connection with its first motion to dismiss and that the court had granted that earlier application. The exhibits concerned non-public, proprietary, and commercially sensitive information in Virtu’s internal policies and training manuals. They also contained information about Virtu’s information-security practices.

Parties’ Positions

Virtu argued that sealing was justified because disclosure could reveal confidential business information, including training materials and information about business operations, and could place Virtu at a competitive disadvantage. Virtu also argued that the request was narrowly tailored because the amended complaint and the motion to dismiss quoted only limited portions of the materials, while Virtu was not seeking to seal those references or quotations. The application stated that the Securities and Exchange Commission consented to the motion.

Ruling

The court’s ruling on the application states: “APPLICATION GRANTED.” Judge John G. Koeltl thus granted Virtu’s request to file the four exhibits under seal. The provided text does not include a separate written explanation by the court beyond that ruling.

Effect

The ruling permits the four specified exhibits to be filed under seal. It does not decide the merits of the Securities and Exchange Commission’s claims or Virtu’s motion to dismiss.