According to court filings, Nasdaq Inc and the New York Stock Exchange have sued the Securities and Exchange Commission in an attempt to block a plan by the regulator to overhaul public data feeds that broadcast stock prices to investors.
Under the SEC’s plan, which was approved in December 2020, supply and demand data for stocks would be added to public feeds, in a move aimed at broadening access to information which exchanges sell to professional traders at a premium.
“Nasdaq believes the SEC exceeded its authority by adopting an ill-considered remake of market structure,” said a Nasdaq’s spokeswoman while adding, the plan “would make equity markets overly complex and increase hidden costs for investors”.
The filings were made in the U.S. Court of Appeals for the District Of Columbia Circuit.
Cboe Global Markets, which operates the Chicago Board Options Exchange, is also suing the SEC over the matter. Cboe did not immediately respond to requests for comments.
The lawsuits marks the latest legal action taken by exchanges against the SEC in recent years which includes a successful challenge to a proposed experiment by the SEC to cap trading fees on 1,400 different stocks.