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Appeals Court rules for stock exchanges in fee fight with the SEC

Judges for a federal appeals court handed stock exchanges a victory by ruling their regulator can’t order them to experiment with trading fees

Judges for a federal appeals court handed stock exchanges a victory on Tuesday by ruling their regulator can’t order them to experiment with trading fees.

The decision from the US Court of Appeals for the District of Columbia Circuit thwarts a planned regulatory effort to study how exchanges’ pricing creates conflicts of interest for stockbrokers that may harm investors. A panel of the appeals court said the programme would have been an “unprecedented action that clearly exceeded the SEC’s authority under the Exchange Act”.

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