Item 1 of 3 People leaving the U.S. Securities and Exchange Commission (SEC) headquarters in Washington, DC. Photo taken on May 12, 2021. Reuters/Andrew Kelly
(1/3) People exit the U.S. Securities and Exchange Commission (SEC) headquarters in Washington, DC. Photo taken on May 12, 2021. Reuters/Andrew Kelly purchases license rights, opens in new tab
NEW YORK, July 5 (Reuters) – A U.S. appeals court on Tuesday said the Securities and Exchange Commission’s ruling would give some financial companies that are not stock exchanges a say in pricing and pricing of sensitive stock market data. The order was canceled. It became popular.
The ruling was a victory for major exchange groups such as Intercontinental Exchange (ICE.N), opens new tab NYSE and Nasdaq (NDAQ.O), opens new tab, which had challenged the SEC’s order. .
Real-time, integrated stock market data, such as the best bid and offer prices available in the market, is a regulatory imperative for brokers, and one of its objectives is for brokers to match customer orders to the best available This is because you can show that you have executed at the price.
In 2020, after more than a decade of complaints from brokers alleging that the exchange was inconsistent in providing core market data while selling similar proprietary market data products, the SEC approved an order governing the collection and dissemination of core market data.
The order directs exchanges and the Financial Industry Regulatory Authority, which are self-regulatory organizations (SROs), to draft a new plan for the dissemination of public stock market data and, among other things, gives non-SROs access to a third of stock market data. 1. Voting of the Steering Committee of the Plan.
Nasdaq, the New York Stock Exchange, and CBOE.Z open in new tab jointly manage 12 of the 16 U.S. stock exchanges, provide governance mandates, and implement mandates challenged the new National Market System (NMS) plan approved by the SEC. and new rules that change how data is integrated and distributed based on plans.
In May, the U.S. Court of Appeals for the District of Columbia sided with the SEC and upheld the data integration rules.
But on Tuesday, the appellate court sided with the exchanges and invalidated the NMS plan, saying the SEC exceeded its authority by giving non-SROs voting rights on the plan management committee.
The SEC, NYSE and Nasdaq declined to comment.
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Report by John McCrank. Editing: Paul Simao and Jacqueline Wong
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