3 ms·
I think what you're saying is, in essence, IEX's current incarnation of handling stock transactions does not exist in a vacuum -- because they are only a tradin
by jasode 11y ago
I think what you're saying is, in essence, IEX's current incarnation of handling stock transactions does not exist in a vacuum -- because they are only a trading technology platform instead of an exchange like NYSE & NASDAQ. As a technology platform, they are really just "clients" of other exchanges and therefore, they're the tail trying to wag the dog.
If they become a full-fledged exchange with stocks listings exclusive to IEX, then those stocks would have better "fairness" characteristics that Brad Katsuyama claims.
Therefore trading AAPL through IEX may incur a financial penalty for being on the "slow" IEX system but trading YC2019Unicorn stock exclusive to IEX may not.
- yummyfajitas 11y agoActually, what I'm saying is the following. Don't put resting orders out onto IEX - a big player will take your liquidity in a big trade and you'll suffer the inevitable price impact. I.e., putting your orders on IEX rather than the open market is just a way to funnel your money to JP Morgan. It's far better to mingle your orders with HFT orders - that'll keep the big guys honest. You'll probably also pay lower fees.