(Reuters) – Nasdaq Inc and the New York Stock Exchange have sued each Securities and Exchange Commission, seeking to block a regulator’s plan to review public data streams that share stock prices to investors .
Under the SEC’s plan, approved in December, demand and supply data for stocks would be added to public flows, widening access to the information that exchanges currently sell to professional traders at first.
“Nasdaq believes the SEC has exceeded its authority by adopting a poorly considered remake of the market structure,” a Nasdaq spokeswoman said in an email. The plan “would make stock markets overly complex and increase hidden costs for investors,” the statement said.
Deposits were made to the U.S. Court of Appeal for the District Of Columbia Circuit.
The Wall Street Journal reported that Cboe Global Markets, which operates the Chicago Board Options Exchange, has also sued the SEC over the issue. Cboe did not immediately respond to Reuters’ request for comment.
The lawsuit is the latest legal action taken by stock exchanges against the SEC in recent years, which include a successful challenge to an experiment proposed by the SEC to limit trading fees to 1,400 different actions.
The SEC also handles other processes. In October, Citadel Securities sued the commission for its decision to approve a new share trading mechanism with exchange operator IEX Group Inc.
Report by Kanishka Singh in Bengaluru; Editing by Edwina Gibbs