Before the Securities and Exchange Commission, (SEC), approval earlier in 2016, IEX founders Brad Katsuyama and Ronan Ryan faced some strong opposition from several incumbent exchanges that started a campaign against awarding approval to make IEX the thirteenth stock exchange in the United States. Both the NYSE and NASDAQ wrote detailed letters to the SEC, asking for them to not approve the license for IEX, claiming that it is against regulations and questioning the circumstances for the time delay.
The unique “speed bump” created by installing a 38-mile fiber optic data cable while disallowing HFT’s from installing cables adjacent to their server, creates a level playing field for all. Other trading venues allow HFTs to front run orders by using predatory algorithms while connected to their servers to gain a speed advantage in the marketplace. Even a fraction of a second is all it takes for a trader to lose their shares on order to a front-running HFT. While the concept of fair trading is an easy one to agree with, firms that are making millions in profits unbeknownst to the investor may not be so thrilled about fair and equitable.
IEX is Gaining Respect and Growing in Size
In June of 2016 the SEC agreed with IEX and granted approval in spite of the opposition. IEX has swiftly gained the attention and the approval of some of the biggest players on Wall Street.
When considering the billions of dollars that flow through all US Stock Exchanges on any given day, it seems very unfair that only a select few are in an advantageous position to skim thousands in profits from the trades originated elsewhere, just because they have installed the finest and best cables. As traders, investors, regulators and the general public gain awareness, IEX gains respect. Enjoying an unprecedented growth rate for a new start up stock exchange, IEX is breaking new ground and with great relief to day traders everywhere.
Great Point Capital, LLC offers buying power, access to Takion software platform with excellent IT support, and the benefits of working with an experienced team. We are pleased to currently trade approximately 10% of our volume on IEX, the Investors Exchange.