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If you're wondering what IEX becoming a full blown exchange means to you, well it probably doesn't matter at all. They have been operating for some time alread

If you're wondering what IEX becoming a full blown exchange means to you, well it probably doesn't matter at all. They have been operating for some time already as an ATS, today they are now part of the RegNMS protected quote, meaning that up until today, brokers did not have to route orders to them. it also allows them to have companies "list" on their exchange, though I don't know of any companies that are planning on listing with IEX currently. They bring 4 unique things to the market - their built in delay of 350 micro seconds on each incoming and out going message, ie they delay order's coming in and they delay fill notifications going out. - they have a patented dynamic peg algo that will allow a user to place an order that the exchange will dynamically price. This order type was a bit contentious as the exchange doesn't delay quote changes when updating these orders, ie these orders are blessed in the sense that they don't obey the 350 microsecond delay. https://www.iextrading.com/trading/dpeg/ https://www.iextrading.com/trading/dpeg/ - they aren't currently allowing co-location - they don't participate in the maker taker model. They charge, I think, 9 cents on dark orders and nothing for lit orders. Maybe the most interesting thing that IEX has brought to the US market is that the NYSE is now filing to add their own discretionary PEG order. https://www.nyse.com/network/article/nyse-order-types https://www.nyse.com/network/article/nyse-order-types

btown 10y ago
For more on the dynamic peg controversy, this article lays it out in detail: https://www.bloomberg.com/view/articles/2015-12-22/the-flash-boys-exchange-is-still-controversial https://www.bloomberg.com/view/articles/2015-12-22/the-flash... TL;DR: > In other words, the objection goes, IEX uses the magic shoebox (and its router's ability to skip the shoebox) to do "latency arbitrage" and trade with stale quotes on other exchanges before traders on those exchanges can update their quotes, just like it accuses high-frequency traders of doing to its own investors. And, the objection goes, if it's unfair for high-frequency traders to do this to IEX's customers, then it's just as unfair for IEX's customers to do it to high-frequency traders. [but maybe this is just leveling the playing field...]
waterside81 10y ago
If I ever chose to invest with K2, it would be entirely because of our contribution to HN. You always make great posts about financial news.
tuna-piano 10y ago
This is the thing when I see wall street, and specifically high frequency trading vilified. Income inequality, the plight of the middle class, etc has almost nothing to do with that kind of financial maneuvering. Getting rid of high speed trading won't affect the average person really at all - but yet it's constantly vilified.
- lbotos 10y ago
  I think it's vilified because for some reason people think that the HFTraders are "stealing" from them in the form of tax avoidance and their exorbitant incomes.
  - mmodahl 10y ago
    Nerds making money and people gunna hate.
    - patio11 10y ago
      I'm not generally a fan of viewing the world in terms of an extended version of the social struggle from high school, but given that this actually does do a reasonably accurate caricature of human market makers versus HFT firms, this has always confused me regarding HN's reaction to HFT. In one corner, we have sweaty alpha male jocks [+]. In the other corner, we have geeks with computers. The geeks ran the table on the jocks primarily because the geeks can do math faster. The jocks complain that the geeks are cheating, because how can they be expected to out-math a computer and, also, isn't math just a little suspicious? And HN sides with the jocks? [+] People might think I'm exaggerating. Videos exist of the daily life of a market maker. Here's a representative day at the office, circa 2000, in Chicago's open outcry options pit: https://www.youtube.com/watch?v=mvx3xM02iUs https://www.youtube.com/watch?v=mvx3xM02iUs In stocks and bonds, you generally got to be sweaty in your own office (open plan, frequently) and yell at someone over the telephone rather than straight to their face.
      - harryh 10y ago
_prototype_ 10y ago
I believe Interactive Brokers has for a while now provided access to IEX, they pass through the fee though per trade.

btown 10y ago

For more on the dynamic peg controversy, this article lays it out in detail: https://www.bloomberg.com/view/articles/2015-12-22/the-flash-boys-exchange-is-still-controversial https://www.bloomberg.com/view/articles/2015-12-22/the-flash... TL;DR: > In other words, the objection goes, IEX uses the magic shoebox (and its router's ability to skip the shoebox) to do "latency arbitrage" and trade with stale quotes on other exchanges before traders on those exchanges can update their quotes, just like it accuses high-frequency traders of doing to its own investors. And, the objection goes, if it's unfair for high-frequency traders to do this to IEX's customers, then it's just as unfair for IEX's customers to do it to high-frequency traders. [but maybe this is just leveling the playing field...]

waterside81 10y ago

If I ever chose to invest with K2, it would be entirely because of our contribution to HN. You always make great posts about financial news.

tuna-piano 10y ago

This is the thing when I see wall street, and specifically high frequency trading vilified. Income inequality, the plight of the middle class, etc has almost nothing to do with that kind of financial maneuvering. Getting rid of high speed trading won't affect the average person really at all - but yet it's constantly vilified.

lbotos 10y ago
I think it's vilified because for some reason people think that the HFTraders are "stealing" from them in the form of tax avoidance and their exorbitant incomes.
- mmodahl 10y ago
  Nerds making money and people gunna hate.
  - patio11 10y ago
    I'm not generally a fan of viewing the world in terms of an extended version of the social struggle from high school, but given that this actually does do a reasonably accurate caricature of human market makers versus HFT firms, this has always confused me regarding HN's reaction to HFT. In one corner, we have sweaty alpha male jocks [+]. In the other corner, we have geeks with computers. The geeks ran the table on the jocks primarily because the geeks can do math faster. The jocks complain that the geeks are cheating, because how can they be expected to out-math a computer and, also, isn't math just a little suspicious? And HN sides with the jocks? [+] People might think I'm exaggerating. Videos exist of the daily life of a market maker. Here's a representative day at the office, circa 2000, in Chicago's open outcry options pit: https://www.youtube.com/watch?v=mvx3xM02iUs https://www.youtube.com/watch?v=mvx3xM02iUs In stocks and bonds, you generally got to be sweaty in your own office (open plan, frequently) and yell at someone over the telephone rather than straight to their face.
    - harryh 10y ago

_prototype_ 10y ago

I believe Interactive Brokers has for a while now provided access to IEX, they pass through the fee though per trade.