Data processor sparks governance row at U

stock market.

A couple shade canada goose outlet toronto factory themselves beneath an umbrella walking past the Nasdaq Market site in New York’s Times Square August 27, 2014. REUTERS/Brendan McDermid

A lobby for the brokerage canadian goose jacket industry late Tuesday urged that the conflict, in which stock Canada Goose sale exchanges can both bid to operate a information processor (SIP) Canada Goose Outlet and vote for themselves, be resolved before a scheduled conference call on canada goose coats Wednesday.

Voting to select a 2018 canada goose outlet SIP operator has stalemated after four votes, according to three sources with knowledge Canada Goose online of the canada goose outlet store locations process. The bidding is between Nasdaq OMX Group Inc and Thesys Technologies LLC, a unit of proprietary trading firm Tradeworx.

A stalemate in the selection process was not resolved during buy canada goose jacket the conference call, said Tom Jordan, chief executive of Jordan Jordan, a securities industry consultancy that was retained to help in the bidding process. Jordan declined further comment. stock and options exchanges brought to the fore a dispute that has festered since a vote in July.

International Securities canada goose store Exchange Holdings Inc (ISE) lost a bid to operate a SIP for the options market to NYSE, a unit of Intercontinental Canada Goose Parka Exchange Inc, even though its bid was much lower.

The vote annoyed ISE. The operator of two buy canada goose jacket cheap options exchanges has urged reform of the rules that govern the little known data processors, which gained notoriety in August 2013 when a problem with the SIP sparked a halt in Nasdaq listed stocks.

were disappointed in the outcome Canada Goose Jackets of canada goose store the OPRA RFP and would support a review of SIP governance that brought both greater transparency to the process and the Canada Goose Online elimination of conflicts of interest in voting, said a spokeswoman for ISE, a unit of Deutsche Borse AG.

No rules were broken during the voting, as exchanges can both bid for canada goose coats on sale a contract and exercise their right to vote.

Both Nasdaq and the canada goose clearance NYSE declined to comment.

The SIPs disseminate quotations and last sale prices, a back office function that generates almost $400 million a year in market data revenue from equity trading. How much is made from connectivity fees to data centers is not broken out in financial reports, but the charges are not cheap.

NYSE charged $16,000 a month for a canada goose clearance sale 10 gigabyte connection to its data center, or double ISE bid, several sources told Reuters. NYSE also charged $9 million a year to operate the SIP, which ISE said it would do for free, said the sources.

The bidding laid bare governance of the SIPs that harks back to an era when the NYSE and Nasdaq dominated the market, before alternative trading venues started growing in the late 1990s.

Brett Redfearn, who oversees JP Morgan Securities market structure strategy for the Americas, said the problem in some respects is a relic from canada goose deals when exchanges were mutualized and before they were publicly traded.

change in the governance model is probably warranted Canada Goose Coats On Sale at this point in time, Redfearn told a Baruch College conference in New York on Tuesday.

The NYSE and Nasdaq controlled the most votes in the two committees for equity trading until the January merger of BATS Global Markets and Direct Edge. BATS now has four votes, one for each of its exchanges, while NYSE and Nasdaq have three each.

The July vote and current deadlocked bidding for goosesale the processor of Nasdaq listed stocks suggests NYSE and Nasdaq are keen on maintaining their control of the SIPs.

How NYSE came from behind to win the July cheap Canada Goose vote is unclear. But votes from arch rival Nasdaq helped put NYSE over the top in voting that required nine of 12 votes to win, according to two sources with knowledge of the bidding.

NYSE and Nasdaq controlled five votes in the July voting, canada goose black friday sale representing the options exchanges they own. Stripping out the two votes controlled by ISE, and one from canada goose an ally in the final round of voting, NYSE and Nasdaq canada goose replica as a bloc controlled the vote.

Additional reporting by John McCrank in New York, reporting by Herbert Lash; editing by Andrew Hay.