Nasdaq Inc and the New York Stock Exchange (NYSE) have both sued the U.S. Securities and Exchange Commission (SEC). According to the court filings, Nasdaq and NYSE wants to block the regulator of overhauling public data feeds that broadcast stock prices to investors. The court filings were made in the U.S. Court of Appeals for the District Of Columbia Circuit.
Joe Christina, head of communications at Nasdaq said: “The SEC exceeded its authority with this ill-conceived remake of market structure. This will make markets more complex and costly.”
The Securities and Exchange Commission used to sell the information to professional traders as a premium service. However, in December, the regulator approved the plan to add supply and demand for stocks in public feeds.
Meanwhile, a Nasdaq spokeswoman said in an emailed statement, “Nasdaq believes the SEC exceeded its authority by adopting an ill-considered remake of market structure. The plan would make equity markets overly complex and increase hidden costs for investors.”
Nasdaq and Several Companies are Filing Lawsuits Against the SEC
Furthermore, the Wall Street Journal reported that CBOE Global Markets — Chicago based Board Options Exchange is also suing the SEC over the same actions. Meanwhile, the SEC is facing lawsuits from more companies for several other reasons. In last October, Citadel Securities sued the U.S. regulator for approving new mechanisms for trading stocks at exchange operator IEX Group Inc.
“The SEC failed to properly consider the costs and burdens imposed by this proposal that will undermine the reliability of our markets and harm tens of millions of retail investors.” A Citadel Securities spokeswoman said in an email in October.
On the other hand, IEX President Ronan Ryan replied in a statement about the SEC actions. He said that he was confident that the decision will be supported.
“Since its launch on Oct. 1, D-Limit is already proving valuable to a broad set of market participants.” Ryan said.
“From our perspective, this recent action should only encourage more investors, brokers, and market makers to use D-Limit. Given that the protections we have created are clearly working.” He added.