By Alexander Osipovich
Nasdaq Inc. and the New York Stock Exchange sued the Securities and Exchange Commission to block the regulator’s plan to review public data feeds that transmit stock prices to investors.
The plan, approved by the SEC in December, threatens data revenues for foreign exchange operators, much of their business.
In parallel lawsuits, Nasdaq NDAQ,
NYSE and exchange operator Cboe Global Markets Inc. CBOE,
asked the United States Court of Appeals for the District of Columbia Circuit to review the SEC’s plan. The records date back to Friday, but were not released on the court’s website until Tuesday. Both the NYSE, which is owned by Intercontinental Exchange Inc. ICE,
and Nasdaq had previously said that the plan was an exaggeration by the regulator, and Nasdaq also argued that this would amount to an unconstitutional seizure of its property.
“The SEC exceeded its authority with this poorly conceived reform of the market structure,” said Joe Christinat, Nasdaq’s head of communications. “This will make markets more complex and expensive.”
An expanded version of this report appeared on WSJ.com.
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