Very important news — after brutal, highly politicized delays, IEX has finally been approved by the SEC.
The Securities and Exchange Commission (SEC) today voted to allow Investor’s Exchange (IEX) to operate as a public stock exchange. It will be the first public exchange to employ techniques specifically designed to thwart manipulative strategies used by high-frequency traders….Institutional investors, such as pension funds, might send their trades to the new exchange in an effort to circumvent high-frequency traders. That may not last long, however, as those other exchanges have reportedly flirted with speed-bump proposals of their own. The tricky problem for them will be to neutralize IEX’s advantage without forfeiting the lucrative business they’ve built selling speed-related services to traders, such as renting locations to traders in the exchange data centers so their trade instructions arrive faster. Alternatively, they might just sue the SEC to try to get IEX’s approval thrown out.