Nasdaq, NYSE Lose SEC Market Data Infrastructure Rule Challenge

Nasdaq, the New York Stock Exchange, and other stock exchanges failed to show a recent SEC rule on market data infrastructure is arbitrary and capricious, the D.C. Circuit said Tuesday.

The ruling upholds the 2020 rule, which includes more detailed trading information in the core data definition and adopted a competitive model for data feeds.

It “clearly represents a reasonable balancing of the objectives Congress directed” the Securities and Exchange Commission to “address in a complex and technical area,” the US Court of Appeals for the D.C. Circuit said.

The exchanges—including Nasdaq Stock Market LLC, New York Stock Exchange ...