COURT CHALLENGE BY MARKETPLACES TO SEC MARKET DATA INFRASTRUCTURE RULE UNSUCCESSFUL
Nasdaq, the New York Stock Exchange and other exchanges challenged the SEC’s Market Data Infrastructure Rule (the “Rule”). The Rule added new categories of data to the definition of "core data” to include more detailed trading information and permitted entities other than the exchanges to develop and sell data products based on data obtained from the exchanges : Nasdaq Stock Mkt. LLC v. Sec, No. 21-1100 Consolidated with 21-1101, 2022 BL 178200 (D.C. Cir. May 24, 2022), Court Opinion (bloomberglaw.com). In its decision dated May 24, 2022, the US Court of Appeal for the District of Columbia upheld the Rule and stated in part:
“This change is likely to promote the availability of many different kinds of data products at different price points, making it more likely that consumers for whom proprietary data products are prohibitively expensive will find in the marketplace an affordable product appropriately tailored to their data needs.”
“ … consumers would no longer face a binary choice between affordable but content-limited feeds and content-rich but expensive products; instead, in the new competitive marketplace, consumers would be able to choose from an array of data products featuring different data at different speeds and at different price points.”
SIFMA was supportive of the ruling.