Nasdaq, New York Stock Exchange sue SEC

In a move to block a plan by the Securities and Exchange Commission (SEC), Nasdaq Inc and the New York Stock Exchange have each sued the regulator to overhaul public data feeds that broadcast stock prices to investors, court filings show. The filings were made in the U.S. Court of Appeals for the District Of Columbia Circuit.

Under the SEC plan that was approved in December last, supply and demand data for stocks would be added to public feeds broadening access to the information which the exchanges currently sell to professional traders at a premium.

"Nasdaq believes that the SEC exceeded its authority by adopting an ill-considered remake of market structure," a Nasdaq spokeswoman said in an emailed statement. The plan would make equity markets overly complex and increase hidden costs for investors, the statement added.

The Wall Street Journal reported that Cboe Global Markets which operates the Chicago Board Options Exchange was in the process to also sue the SEC over the issue.

The lawsuit is the latest legal action taken by the exchanges against the SEC in recent years which include a successful challenge to a proposed experiment by the SEC to cap trading fees on 1,400 different stocks.

The SEC is also in the midst of some other suits. Like in October last, Citadel Securities sued the commission over its decision to approve a new mechanism for trading stocks at exchange operator IEX Group Inc.