Nasdaq OMX has cancelled its contract to run the Securities Information Processor (SIP), the data feed which was hit by a technology glitch last summer, halting trading for three hours.
Nasdaq OMX and Nyse Euronext - now owned by IntercontinentalExchange - both run SIPs on behalf of US exchanges, consolidating data and distributing it to the wider market for a fee.
The August software meltdown, which saw trading in all $5.65 trillion of Nasdaq-listed securities halted for several hours, drew Nasdaq OMX heavy criticism and prompted the SEC to wade into the debate on exchange technology infrastructure.
Since then, Nasdaq OMX has made proposals to upgrade the SIP to a committee of industry representatives which must sign off on any changes.
However, according to a November letter, seen by the Wall Street Journal, Nasdaq OMX became frustrated in its efforts to push through the planned changes and decided to cancel its contract to run the SIP.
Under its contract, the operator will have to carry on running the processor for another two years but after that a new outfit will have to take over - unless Nasdaq OMX has a change of heart.