A federal court partially rejected a plan by the Securities and Exchange Commission to relax exchanges’ control over public market data feeds, giving Nasdaq Inc. NDAQ a victory.
and ICE by Intercontinental Exchange Inc.,
New York Stock Exchange.
In a ruling released Tuesday, a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit found that the SEC had exceeded its powers under federal law when it issued a 2020 order revising the administration of the data feeds .
The ruling cleared a key provision of the order and was a blow to the agency’s efforts to curb fees charged by exchanges for market data. Brokers and trading firms have long complained that they overpay for such data, and they say exchanges wield monopoly power to keep prices high. Exchanges reject such arguments and have fought back in court against the SEC’s attempts to shake up the data business.
An SEC spokeswoman declined to comment.
The data feeds at the heart of Tuesday’s ruling — called securities information processors, or SIPs — send real-time stock prices to investors. They’re big business for exchanges, who collectively make hundreds of millions of dollars a year from the fees brokers pay to access the feeds.
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https://www.marketwatch.com/story/court-deals-blow-to-secs-bid-to-overhaul-market-data-feeds-from-nasdaq-nyse-11657061484?rss=1&siteid=rss Court decisions miss SEC offer to overhaul Nasdaq, NYSE market data feeds