Nasdaq, New York Stock Exchange sue SEC over planned overhaul of public data feeds
3:33 am Wednesday, February 10th, 2021
By Kanishka Singh
(Reuters) – Nasdaq Inc and the New York Stock Exchange have each sued the Securities and Exchange Commission, seeking to block a plan by the regulator to overhaul public data feeds that broadcast stock prices to investors, court filings show.
Under the SEC plan, approved in December, supply and demand data for stocks would be added to public feeds, broadening access to the information which the exchanges currently sell to professional traders at a premium.
“Nasdaq believes the SEC exceeded its authority by adopting an ill-considered remake of market structure,” a Nasdaq spokeswoman said in an emailed statement. The plan “would make equity markets overly complex and increase hidden costs for investors”, the statement said.
The filings were made in the U.S. 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, was also suing the SEC over the issue. Cboe did not immediately respond to a Reuters request for comment.
The lawsuit is the latest legal action taken by the exchanges against the SEC in recent years, which include a successful challenge to a proposed experiment by the SEC to cap trading fees on 1,400 different stocks.
The SEC is also dealing with other suits. In October, Citadel Securities sued the commission over its decision to approve a new mechanism for trading stocks at exchange operator IEX Group Inc.
(Reporting by Kanishka Singh in Bengaluru; Editing by Edwina Gibbs)
