(Reuters) – Nasdaq Inc and the New York Stock Exchange have sued the Securities and Exchange Commission, trying to block a regulator’s plan to review public data flows that pass on share prices to investors, according to court records.
According to the SEC plan, approved in December, stock supply and demand data would be added to public information channels, thus expanding access to the information that exchanges currently sell to professional traders at a good price.
“Nasdaq believes the SEC exceeded its authority by adopting a ill-considered reform of the market structure,” a Nasdaq spokeswoman said in an emailed statement. The plan “would make equity markets overly complex and increase hidden costs for investors,” according to the statement.
The submissions were filed 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 request for comment from Reuters.
The lawsuit is the latest lawsuit filed by the stock exchanges against the SEC in recent years, which includes a successful challenge to an experiment proposed by the SEC to limit trading fees to 1,400 different shares.
The SEC is also dealing with other lawsuits. In October, Citadel Securities sued the commission for its decision to approve a new mechanism for trading shares in foreign exchange operator IEX Group Inc.
Reports from Kanishka Singh to Bengaluru; Edited by Edwina Gibbs