A United States Appeals Court in New York reinstated a lawsuit brought by certain institutional investors against BATS Global Markets, Inc. and six other national securities exchanges, claiming the exchanges misled certain institutional investors regarding various products and services they sold to high-frequency trading firms that allegedly favored those firms to the institutional investors’ detriment. Previously, a US District Court had dismissed the institutional investors’ lawsuit against the exchanges claiming the exchanges had absolute immunity as self-regulatory organizations. The Appeals Court held that if the exchanges granted favorable business terms to HFTs, they would not have done so as regulators standing in the shoes of the Securities and Exchange Commission, but as SEC-regulated entities. As a result, no immunity existed for the exchanges.