By Alexander Osipovich
Nasdaq Inc. and the New York Stock Exchange sued the Securities and Exchange Commission to halt the regulator’s plan to sharpen the public data feeds that stock prices broadcast to investors.
The plan, which the SEC approved in December, threatens the revenue of the exchange operators, a large part of their businesses.
In parallel court documents, Nasdaq NDAQ,
the NYSE and exchange operator Cboe Global Markets Inc. CBOE,
asked the U.S. Court of Appeals for the District of Columbia Circuit to review the SEC’s plan. The documents were dated Friday, but only released on the court’s website on Tuesday. Both the NYSE, which is owned by Intercontinental Exchange Inc. ICE is owned,
and Nasdaq had earlier said the plan was an agreement by the regulator, and Nasdaq also argued that it amounted to an unconstitutional seizure of its property.
“The SEC has exceeded its authority with this ill-considered remake of the market structure,” said Joe Christinat, head of communications at Nasdaq. “It will make markets more complicated and expensive.”
An extensive version of this report appears on WSJ.com.
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