SEC Staff Says Exchanges Must Defend Fee Increases With Evidence

May 22, 2019, 12:44 PM

Intercontinental Exchange Inc.’s New York Stock Exchange and Nasdaq Inc. are facing a tougher road for justifying increases in the fees they charge for market data and other services.

In guidance issued May 21, Securities and Exchange Commission staff detailed how exchanges should show that the prices they charge are reasonable, don’t unfairly discriminate or harm competition. Without such assurances, the SEC can temporarily suspend a proposed increase and seek to formally approve or disapprove it.

Fees that stock exchanges charge Wall Street brokerages are at the center of a legal battle between the companies and the regulator as a...

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