Reforming NMS Plan Governance to Enhance Fairness in Equity Market Data Provision

The Securities and Exchange Commission recently issued an order in response to concerns about the governance structure of existing equity data plans. The order is addressed at conflicts of interest between exchanges' regulatory responsibilities on existing NMS plans and their individual interests in maximizing the viability of their proprietary data products. In addition, the order seeks to improve the efficiency of NMS plan operations and the responsiveness of the plans to market participants that are not self-regulatory organizations. As part of the order, a new NMS plan must be submitted and published for public notice and comment. Until such a plan is effective, the current NMS plans will remain in effect.