Nasdaq and New York Stock Exchange sue SEC over planned

In this news, we discuss the Nasdaq and New York Stock Exchange sue SEC over planned public overhaul data feeds

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(Reuters) – Nasdaq Inc and the New York Stock Exchange have each sued the Securities and Exchange Commission, seeking to block a regulator’s plan to review the public data streams that broadcast stock prices to investors, according to court documents.

Under the SEC plan, approved in December, supply and demand data for stocks would be added to public flows, expanding access to information that the exchanges currently sell to professional traders at a premium.

“The Nasdaq believes the SEC has overstepped its authority by adopting a thoughtless remake of the market structure,” a Nasdaq spokeswoman said in an emailed statement. The plan “would make the stock markets too complex and increase hidden costs for investors,” the statement said.

The filings were filed with the United States Court of Appeals for the District of Columbia Circuit.

The Wall Street Journal reported that Cboe Global Markets, which operates the Chicago Board Options Exchange, is also suing the SEC over the matter. Cboe did not immediately respond to a request for comment from Reuters.

The lawsuit is the latest legal action brought by the exchanges against the SEC in recent years, which includes a successful challenge to an experiment proposed by the SEC to cap trading fees on 1,400 different stocks.

The SEC is also handling other lawsuits. In October, Citadel Securities sued the commission over its decision to approve a new stock trading mechanism at brokerage firm IEX Group Inc.

Report by Kanishka Singh in Bengaluru; Edited by Edwina Gibbs

Original © Thomson Reuters

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