A long-anticipated settlement between Virtu Financial Inc. and the U.S. Securities and Exchange Commission (SEC) has hit an unexpected pause, as the ongoing government shutdown forced regulators to delay a crucial vote that would have finalized the deal.
The SEC informed a New York federal court on Friday that its agreement with Virtu — intended to end a lawsuit over alleged failures to safeguard customer trading information — can’t move forward until the agency’s commissioners are able to reconvene and cast their votes.
Shutdown Forces Regulatory Freeze
According to the SEC’s Friday filing, the commission had planned to vote on the settlement in early October, marking the final step before presenting it for judicial approval. But the shutdown halted operations, derailing the process and putting the entire resolution temporarily on ice.
“The Division of Enforcement anticipates that the commission’s final consideration of the settlement will occur as quickly as practicable once it resumes normal operations,” the SEC’s filing stated, signaling that the deal remains intact but delayed.
Without that internal approval, the proposed judgment cannot be added to the court’s docket, effectively freezing progress in a case that has already attracted significant attention across the financial sector.
