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Flash Boys win approval for new IEX Group Stock Exchange

heezsafe
in Fund Discussions
The IEX has been a flash point in the broader debate over technological changes that have altered the basic functioning of the American stock markets over the last two decades. IEX won support — and financial backing — from several large mutual fund companies, which said that the exchange would help them trade more cheaply and efficiently, as well as from hundreds of small investors, many of whom read “Flash Boys” and wrote in to the S.E.C.

Brad Katsuyama, the chief executive of IEX, said on Friday night that the company was “grateful and humbled by the support we’ve received from the investor community, without it, we may have faced a different result.”

In addition to the speed bump, the IEX has said it will not offer the same fees or rebates that other exchanges do to attract traders, a common practice at other exchanges that has been criticized for distorting trading incentives. The IEX also offers fewer complicated ways to enter trades than other exchanges, in an effort to simplify trading.
http://www.nytimes.com/2016/06/18/business/dealbook/iex-group-gains-approval-for-stock-exchange.html?_r=0

Comments

  • heezsafe
    For those who do not remember, the concept of this exchange (and I think some seed money) was heavily supported and endorsed by Fidelity and T Rowe Price. Consequently, if you have investments at either of these firms, your portfolio manager probably will be coming to IEX Group to do some of their buying and selling, FWIW.
  • Old_Skeet
    edited June 2016
    Perhaps if more trades get routed through IEX that will leave the high frequency gang to trade among themselves (spoof each other). It will be interesting to see what kind of volume this new exchange generates. I am thinking that it will grow volume over time; and, I am also hoping this starts the demise of the flash crowd which I believe from what I have read have been scalping the markets now for too many years. Indeed, it is time for this front running high frequency electronic trade activity to stop.
  • rforno
    Good for them. About time some Wall Street technical 'innovations' benefitted the retail investor and other responsible investing entities (ie fund companies) instead of the HFTs and trading 'pros'.
  • TedTed
    @MFO Members: IEX Mission Video
    Regards,
    Ted
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