IEX exchange bid should be judged on its own merits: FINRA chief
A proposal to let U.S. stock exchanges delay order responses by less than a millisecond will likely move ahead, paving the way for “Flash Boys” heroes IEX Group to become an exchange, the head of Wall Street’s self-funded watchdog said on Wednesday. Such delays would not harm the ability of market participants to access stock quotes and could encourage innovation from exchanges that benefits investors, the U.S. Securities and Exchange Commission said in its proposed interpretation on automated quotations.
IEX says it slows orders by 350 millionths-of-a-second in order to prevent predatory traders using high-speed technology from picking up on trading signals and then racing ahead and electronically front-running investors’ orders, a practice termed “latency arbitrage.” Author Michael Lewis chronicled IEX’s efforts in his book, “Flash Boys: A Wall Street Revolt.”
A window into today's Exchanges https://t.co/TwpoluQQZG
— IEX (@IEX) April 13, 2016