Court backs exchanges in market data pricing case

Court backs exchanges in market data pricing case

A US appeals court has ruled in favour of Nyse Euronext and Nasdaq OMX in their battle with Internet and securities industry associations over market data fees.

The court dismissed petitions from Sifma and NetCoalition - a group which counts Google and Yahoo among its members - because the recent Dodd-Frank Act takes the issue out of its jurisdiction.

The market data fee fight goes back more than a decade, with a series of SEC hearings between 1999 and 2005 failing to resolve the differences between exchanges and traders.

Then, in 2006 the SEC determined that the Nyse's pricing of the Arca Book data was "fair and reasonable", prompting NetCoalition to take up the cudgels, arguing that, in fact, the exchange was charging too much.

After a long process, the court now says that the recently introduced Dodd-Frank Act means that it "simply is not at liberty to displace, or improve upon, the jurisdictional choices of Congress".

You can read the full ruling here

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