IEX is now the exchange

K

kalmar

end of HFT?

IEX will effectively become the first HFT-free venue, and will likely attract substantial institutional interest as the risk of being frontrun by HFT parasites is no longer present. IEX says its 350 microsecond delay is just long enough to protect investors from predatory high-speed trading that can front-run the orders of slower investors.

http://www.zerohedge.com/news/2016-...nted-exchange-status-sec-says-speed-race-over
 
Before this, I could route orders to IEX. Now that IEX is an "exchange," what does that imply? Does it mean that I can now see IEX quotes in the national best bid/offer? Why does this become an HFT killer when I could route orders to IEX before it became an exchange?
 
HFT's are always an interesting target although some may argue that they don't hurt the little guy I think they do, Flash Boys was an interesting book, definitely a good read.....
 
Note that IEX doesn't apply the same speed bump to their own smart router, which is faster. And for that you have to pay them extra... just a different way to skim some fees off.

My limited experience with IEX was that the fills were ok but the fees were pretty high, so it wasn't as good as other options.
 
You must log in or register to reply here.
Back
Top