IEX, New stock exchange will fight to curb online trading
The highly anticipated IEX stock exchange finally get nod from the Securities and exchange board on Friday. The upstart trading venue featured in Michael Lewis ‘book “Flash Boys: A Wall Street Revolt”
In the book author portrayed the traditional exchange as an unfair playing field for most investors. High-speed traders receive information moments before everyone else, and use superfast technology to trade on that information. They gain a split-second advantage over the market and stand to profit big from even a minor time difference.
The IEX aims to enter into the stock exchange business is to make access to stocks fairer for everyone its system had been operating as a dark pool in the market. It bans trading houses from paying for servers that live closer to stock matching engine.