Antiturst Law-Exemptions for Regulated Industries – Applicability of the Antitrust Laws to Stock Exchanges

Defendant, the New York Stock Exchange, directed its members to discontinue their direct private wire connections with plaintiffs who were non-member brokers. These private wire connections were utilized primarily for facilitating transactions in the over-the-counter market. Repeated requests by plaintiffs for reinstatement were ignored, and the defendant refused to apprise the plaintiffs of the reasons for its action. Plaintiffs then brought suit, seeking damages and injunctive relief pursuant to sections 4 and 16 of the Clayton Act. Maintaining that defendant’s conduct violated section 1 of the Sherman Act, plaintiffs moved for summary judgment. Held, motion granted.6 Defendant does not enjoy an exemption from the antitrust laws. The conduct of it and its members constituted a concerted refusal to deal, which is a per se violation of the Sherman Act. Silver v. New York Stock Exchange, 196 F. Supp. 209 (S.D.N.Y. 1961).