By Alexander Osipovich
Nasdaq Inc. and the New York Stock Exchange sued the Securities and Exchange Commission to block the regulator’s plan to review public data flows that disseminated share prices to investors.
The plan, approved by the SEC in December, threatens the revenues of data exchange operators, an important part of their business.
In parallel cases in court, Nasdaq NDAQ,
NYSE and exchange operator Cboe Global Markets Inc. CBOE,
asked the U.S. Court of Appeal for the District of Columbia Circuit to review the SEC plan. The applications were dated on Friday, but were only published on the court’s website on Tuesday. Both NYSE, owned by Intercontinental Exchange Inc. ICE,
and Nasdaq said earlier that the plan was overburdened by the regulator, and Nasdaq also argued that it would mean an unconstitutional seizure of its assets.
“The SEC has overtaken its authority with this ill-conceived remake of the market structure,” said Joe Christinat, head of communications at Nasdaq. “This will make markets more complex and expensive.”
An extended version of this report appeared on WSJ.com.
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