A U.S. appeals court struck down an order by the Securities and Exchange Commission that would have allowed some financial firms. That are not stock exchanges to have a say in how essential stock market data is priced and disseminated.
The ruling was a win for large exchange groups like Intercontinental Exchange’s (ICE.N) NYSE. And Nasdaq (NDAQ.O), which had challenged the SEC’s order.
That order directed the exchanges and the Financial Industry Regulatory Authority, which are self-regulatory organizations. To draft a new plan for the dissemination of public equity market data that, among other things; would give non-SROs one-third of the votes on the plan’s operating committee.
Nasdaq, NYSE and Cboe Global Markets (CBOE.Z), which together run 12 of the 16 U.S. stock exchanges, challenged the governance order. The new national market system plan the SEC approve to implement the order, and a new rule to alter how data gets consolidate under the plan.
In May, the U.S. Circuit Court of Appeals for the District of Columbia sided with the SEC and upheld the data consolidation rule.
-Reuters.
