By Alexander Osipovich
Nasdaq Inc. and the New York Stock Exchange have sued the Securities and Exchange Commission to block the regulator’s plan to review the public data feeds that broadcast stock prices to investors.
The plan, which the SEC approved in December, threatens the exchange operators’ data revenues, much of their business.
In parallel court documents, Nasdaq NDAQ,
the NYSE and exchange operator Cboe Global Markets Inc. CBOE,
asked the U.S. Court of Appeals for the District of Columbia Circuit to review the SEC’s plan. The filings were dated Friday, but only released on the court website on Tuesday. Both the NYSE, which is owned by Intercontinental Exchange Inc. ICE,
and Nasdaq had previously said the plan was an overshoot of the regulator, and Nasdaq had also argued that it would amount to an unconstitutional seizure of his property.
“The SEC surpassed its authority with this ill-conceived overhaul of the market structure,” said Joe Christinat, Nasdaq’s chief of communications. “This will make markets more complex and more expensive.”
An expanded version of this report has appeared on WSJ.com.
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