SEC to Rule NYSE, Nasdaq Didn’t Justify Market Data Fee Increases

The Securities and Exchange Commission on Tuesday is expected to rule the country’s biggest exchanges didn’t justify increases in fees they charge for certain market-data products that brokers and traders consider essential to their business, a person familiar with the matter said.

The commission, in an order to be released later Tuesday, is expected to overturn a prior approval of fees charged by the New York Stock Exchange and Nasdaq for specially designed data feeds they sell, which reveal far more detail about market activity than the ticker tape that investors see on financial-news stations. The regulatory intervention casts doubt on the ability of the big U.S. stock exchanges to extract additional profits from the rest of the financial industry by selling information on stock orders at ever-higher rates.

Reported by Wall Street Journal — 10/16/18