Big U.S. exchanges to sue SEC over 'overreaching' fee experiment

NEW YORK (Reuters) - The three largest U.S. stock exchange operators said they will sue the Securities and Exchange Commission for overstepping its authority by ordering a pilot program to test banning lucrative payments exchanges make to brokers for resting stock orders.

"We disagree with the government overreach, and this really represents an unprecedented attempt by the SEC to distort the free market mechanisms that govern the competition among trading venues," Michael Blaugrund, head of transactions at NYSE, told reporters in New York on Friday.

Intercontinental Exchange Inc's NYSE, Nasdaq Inc, and Cboe Global Markets, which together operate 13 of the 14 U.S. stock exchanges, each filed separate notices that they intend to sue the SEC. At issue is a pilot program the regulator approved in December that will restrict the amount exchanges can charge for stock trade executions, as well as the rebates exchanges pay brokers for orders that others can trade against, for one to two years.

The program aims to shed light on whether rebate payments, collectively around $2.5 billion last year, create conflicts of interest by incentivizing brokers to send customer orders to the exchanges that pay the biggest rebates rather than to those that would obtain the best results for the end clients.

The exchanges argue rebates are needed to compensate brokers for providing liquidity and that the SEC has not shown that they harm the market.

"The SEC is required by statute to determine there is a problem, not go on a fact-finding mission," Ed Tilly, chief executive officer of Cboe, said in an interview on Feb. 8.

Cboe, Nasdaq, and NYSE vigorously opposed the pilot when it was proposed early last year.

They argued it would create winners and losers, as private stock trading venues, which execute around 40 percent of U.S. stock transactions, would not be subject to the restrictions, giving them a competitive advantage. They also said bid-ask spreads would widen without rebates, creating hundreds of millions of dollars in new costs for investors.

The pilot was expected to begin later this year, but NYSE said it will request a delay while it pursues its lawsuit.

The SEC did not immediately respond to a request for comment.

"It's a very difficult decision to decide to take your primary regulator to court," said NYSE's Blaugrund. "That being said, we feel this is overreaching, and we need to draw a clear line in the sand."

https://www.marketscreener.com/news/Big-U-S-exchanges-to-sue-SEC-over-overreaching-fee-experiment–28018731/?countview=0

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SEC finally growing a pair. This would severely restrict algo trading as they get to stuff as many quotes into a micro second as they can. Have long been a supporter of charging these ass-hats for doing this as it would stop it cold. Make them keep the quotes active for an extended period of time. The big issue is that they stuff the system full of these orders and never intend to fill them. If they had to pay to do this then they wouldn't do it. It gives the appearance of depth or actual liquidity when it is not really there. The exchanges pay them to provide the quotes too..it really is fucked how they get away with this.

>>5203148

>>5203209

>>5203324

baker

this represents the first shot at the system of corruption on wall street. That the SEC is finally saying they are going to end rebate payments for this is fairly big. These payments exist to keep the appearance of money flow or liquidity on wall street when it does not really exist. It does for the small people like when I use to do this for a living. When you are a big player and have many millions of shares in X company you have to keep that 'valued' at a certain level. It is basically keeping an asset valued at the level you need it to keep the game going. It's moar complicated but it's no surprise that the exchanges are fighting this because they give billions to the market participants in exchange for keeping all those paper assets at a certain level so it all appears 'good' for everyone involved.

It's all about algo-based trading and that has much influence on keeping all this crap paper assets valued so the game continues.

this will do much to take away the advantage that the banker's have in manipulating the system so they all stay 'fat'.

>>5203199

>>5203439

no problem. many do not and I was the same way many year's ago until i became 'enlightened' so to speak. It's really not very complicated but most people just tune out as it's very dry material. The system likes it that way.

It's a language thing. most people get intimidated by the language and then turn on the tv for it to be explained and of course they always say it's 'fine'.

Stay far away from financial tv…total ass-clowns for the most part. Bloomberg is the best out of them but when you start with shit…etc. They have terminals that they charge a large amount for and thus have to focus moar on content with the tv channel.

When the focus is placed on the banks, wall street-hopefully soon-most of this stuff will be front and center. Have waited many year's to participate in taking these people out and relish the chance to do so.

ty for your time

deano toast to you

>>5203525

fun fact or not…kek

John Stewart's (former daily show host) brother was the COO of the NYSE.

https://blogs.marketwatch.com/thetell/2013/11/26/jon-stewarts-brother-and-more-leaving-the-new-york-stock-exchange-after-ice-merger/

>>5203589

>>5203666

>>5203696

i have wondered that myself. the programming of people is just too deep. over a year ago i had my mother visit, it was the saturday before LV shooting and I went on a rant about how they are trying to normalize it and she just looked at me like I was crazy..specifically mentioned that sick fuck too. have not spoken to any of my family since shortly after that.

I'm crazy they say.

>>5203735

they are but do not know the extent of what they look at. think it's just keeping connected to other family member's. I have never had any of it so it is possible to find out about this stuff-if you want. no twatter, instagram, any of it. do not begrudge people who do. worked in tech in the bay area starting in late 80's so what i have seen is not surprising to me the only difference is the names have changed.

when they brought negroponte into hussein's cabinet i knew it was over.

>>5203777

chek'em

>>5203802

this was also announced in india recently as well.

fawk me

just clean these shits out of my state.

I'm sure they will shop frugally too…not.

>>5203846

they speak brainwashed anyway. they are going to shit when they find out what i've been doing here for the last year. happy grin and a big fuck you back to them. wish it was not that way but they made the choice.

i appreciate all the info put in here about soc media as that's how i find out about the reach.

especially like the assault on the k-twats..that was fun having them come after me with the sec crap.

>>5203887

became proficient in it here as i never needed before. no soc media