Trading system in "Flash Boys" mulls faster exchange application


IEX Group is considering applying to become an exchange earlier than expected, says CEO Brad Katsuyama, who is a central character in Michael Lewis' book "Flash Boys: A Wall Street Revolt."

Katsuyama cited "interest from corporate clients about listings" as a reason for the possible change in plan. However, Katsuyama didn't provide a timeframe.

At the moment, IEX is registered as an Alternative Trading System. It has said that it would apply to become an exchange when it reaches 5% of U.S. stock volume. Since the release of "Flash Boys," volume has doubled and is at 0.5%.

"Flash Boys" has caused much controversy, as it argues that the markets are rigged in favor of high-speed traders.

More on "Flash Boys."

Comments (3)
  • june1234
    , contributor
    Comments (4356) | Send Message
     
    No such thing as bad publicity just make sure you spell the name right says Brad Katsuyama and thanks.
    6 Apr 2014, 03:53 AM Reply Like
  • King Rat
    , contributor
    Comments (1624) | Send Message
     
    "trading" may be rigged for HFT, but investing is more or less fair.

     

    for anybody who got in on AAPL in 2003 and sold in 2012, would the buy price (pre-split) of 18.77 be much worse than 18.770001?
    Would the sell price (post-split) of 654.15 been much worse than 654.149999?

     

    Invest (not trade) in the right stock at the right time and you will not even notice.

     

    Anyway, the margins are so minute for HFTs that just subjecting them to the same margin, fee, and tax requirements as everybody else would put them out of business. For example, I seem to lose a penny or whatever in government fees alone on each transaction, so if some HFT greases 1/1000th of a penny from my trade, how can they possibly profit unless they don't pay that same government fee that I have to pay?
    7 Apr 2014, 01:27 AM Reply Like
  • davidadavis@gmail.com
    , contributor
    Comment (1) | Send Message
     
    Maybe you think it's fair King Rat, but I'd suggest reading Michael Lewis's book, and you'll never want to trade on the American stock markets again.
    5 May 2014, 02:52 PM Reply Like
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