(Reuters) – Nasdaq Inc and the New York Stock Exchange have each sued the Securities and Exchange Commission, trying to block a regulator’s plan to sharpen public data feeds that send stock prices to investors.
Under the SEC plan, approved in December, the supply and demand data for shares will be added to the public feeds, increasing access to the information the exchanges are currently selling to professional traders at a premium.
“Nasdaq believes the SEC has exceeded its authority by adopting an ill-considered version of the market structure,” a Nasdaq spokesman said in an email. The plan “will make the stock market too complicated and increase hidden costs for investors”, the statement said.
The applications were made 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, is also suing the SEC over the issue. Cboe did not immediately respond to a request for comment.
The lawsuit is the latest legal action taken by the stock exchanges against the SEC in recent years, which includes a successful challenge to a proposed SEC experiment to limit trading fees to 1,400 different shares.
The SEC also handles other packages. In October, Citadel Securities sued the commission over its decision to introduce a new stock trading mechanism at exchange operator IEX Group Inc. to approve.
Reporting by Kanishka Singh in Bengaluru; Edited by Edwina Gibbs