WASHINGTON: US regulators have given trading group IEX a green light to launch a new stock exchange, which will operate at a slightly slower speed of trading, the Securities and Exchange Commission said.
Investors Exchange (IEX) will introduce a small delay or “speedbump” of 350 milliseconds on orders to buy and sell stock, in an attempt to level the playing field for ordinary investors and thwart predatory, high-frequency traders.
“Today’s actions promote competition and innovation, which our equity markets depend on to continue to deliver robust, efficient service to both retail and institutional investors,” SEC Chair Mary Jo White said in a statement Friday.
IEX and its founder, Brad Katsuyama, were featured in the hit 2014 book “Flash Boys: A Wall Street Revolt,” which argued that stock exchanges, large Wall Street banks and high-speed traders have established a system that results in higher prices for the stock purchases of ordinary investors.
“We are thrilled that the SEC has approved our exchange filing,” Katsuyama posted on the website of IEX, which he founded in 2013.
He added that rollout will be completed by September 2.
Copyright AFP (Agence France-Presse), 2016
Courtesy : BRecorder