By Alexander Osipovich
Nasdaq Inc. and the New York Stock Exchange sued the Securities and Exchange Commission for blocking the regulator’s plan to review public data sources that pass on stock prices to investors.
The plan, approved by the SEC in December, threatens the data revenue of foreign exchange operators, a significant part of their businesses.
In parallel court proceedings, Nasdaq NDAQ,
the New York Stock Exchange operator and Cboe Global Markets Inc. CBOE,
asked the U.S. District Court of Appeals for the District of Columbia to review the SEC’s plan. The records were posted Friday, but were only posted Tuesday on the court’s website. Both the NYSE, owned by Intercontinental Exchange Inc. ICE,
and Nasdaq had previously said the plan was overly far-reaching by the regulator, and Nasdaq had also argued that it would lead to an unconstitutional confiscation of its property.
“The SEC exceeded its authority with this ill-conceived remake of the market structure,” said Joe Christinat, head of communications for the Nasdaq. “This will make markets more complex and costly.”
An expanded version of this report appeared on WSJ.com.
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