The Wall Street Journal: Nasdaq, NYSE sue SEC over plan to overhaul data feeds

United States

By Alexander Osipovich

Nasdaq Inc. and the New York Stock Exchange sued the Securities and Exchange Commission to block the regulator’s plan to overhaul the public data feeds that broadcast stock prices to investors.

The plan, which the SEC approved in December, threatens the exchange operators’ data revenue, a major part of their businesses.

In parallel court filings, Nasdaq NDAQ, +0.48%, the NYSE and exchange operator Cboe Global Markets Inc. CBOE, +0.14% 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’s website Tuesday. Both the NYSE, which is owned by Intercontinental Exchange Inc. ICE, -0.18%, and Nasdaq had earlier said that the plan was an overreach by the regulator, and Nasdaq had also argued that it would amount to an unconstitutional seizure of its property.

“The SEC exceeded its authority with this ill-conceived remake of market structure,” said Joe Christinat, head of communications at Nasdaq. “This will make markets more complex and costly.”

An expanded version of this report appeared on WSJ.com.

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