The Nasdaq Stock Market, trying to head off rivals in the sale of stock price information, will begin paying securities firms next month for information on their trades in Nasdaq stocks.
The nation's second-largest market is promising cash to brokerages that report details on their trading exclusively to Nasdaq. But brokerages would forfeit the money if they also report trades in Nasdaq stocks through a rival market, such as the Chicago Stock Exchange.
"There is a lot of money at stake," said Joel Seligman, head of a Securities and Exchange Commission advisory committee on market data. "It's big-league stuff."
Nasdaq's revenue-sharing plan is a new tactic in the battle over who controls information on the size and price of stock trades that the markets sell for millions of dollars. Last year, U.S. markets generated almost $600 million in revenue by selling data to investors and vendors such as Reuters Group and Bloomberg.