Nasdaq and Cboe Challenge SEC Over New Stock Trading Rule (1)

Nasdaq Inc. and Cboe Global Markets Inc., two of the biggest stock exchanges, challenged a new US Securities and Exchange Commission rule that changes the economic structure of how stocks trade.

The firms asked a court to review the SEC’s recently finalized national market structure regulation, also known as Reg-NMS, according to a petition, which they said was lodged with a United States appeals court in Washington.

“The SEC’s recently adopted amendments to certain Reg NMS rules fall short of supporting these principles and will inhibit price discovery, leading us to file a petition for review,” Cboe said in ...