(Reuters) – Nasdaq Inc and the New York Stock Exchange have each sued the Securities and Exchange Commission in an attempt to block a regulator’s plan to overhaul public data feeds that broadcast stock prices to investors, lawsuits 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 the exchanges are currently selling to professional traders at a premium.
“Nasdaq believes the SEC has surpassed its authority by adopting an ill-considered overhaul of the market structure,” a Nasdaq spokeswoman said in an emailed statement. The plan “would make stock markets too complex and increase hidden costs for investors,” the statement said.
The filings have been filed with 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, is also suing the SEC on the matter. Cboe did not immediately respond to a request from Reuters for comment.
The lawsuit is the latest legal action the stock exchanges have taken against the SEC in recent years, including a successful challenge to a proposed experiment by the SEC to limit trading costs for 1,400 different stocks.
The SEC is also dealing with other suits. In October, Citadel Securities sued the committee for its decision to approve a new stock trading mechanism at exchange operator IEX Group Inc.
Reporting by Kanishka Singh in Bengaluru; Editing by Edwina Gibbs