Nasdaq and NYSE sue the SEC over data changes
By Ramla Soni
14:00, 10 February 2021
Nasdaq and the New York Stock Exchange have sued the Securities and Exchange Commission (SEC), in order to block the regulator’s plan to overhaul public data feeds that show stock prices to investors.
The plan, which was approved by the SEC in December, allows the supply and demand data for stocks to be added to public feeds.
This would broaden the access to information which the exchanges currently sell to professional traders at a premium.
US Court of Appeals
The filings by both exchanges were made in the US Court of Appeals for the District of Columbia Circuit.
“Nasdaq believes the SEC exceeded its authority by adopting an ill-considered remake of market structure,” a Nasdaq spokeswoman said.
The plan “would make equity markets overly complex and increase hidden costs for investors”.
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Citadel Securities
The lawsuit is the latest legal action taken by the exchanges against the SEC in recent years, which include a successful challenge to an experiment by the SEC to cap trading fees on 1,400 different stocks.
The SEC is also dealing with a suit by Citadel Securities who sued the commission in October over its decision to approve a new mechanism for trading stocks at exchange operator IEX Group.
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