#FINTECH IEX says it slows orders by 350 millionths-of-a-second in order to prevent predatory traders using #HFT

“They [Vampire Squid] know how to suck the blood out of everything” –SEC Commissioner Piwowar (true!)

IEX says it slows orders by 350 millionths-of-a-second in order to prevent predatory traders using high-speed technology from picking up on trading signals and then racing ahead and electronically front-running investors’ orders, a practice termed “latency arbitrage.” Author Michael Lewis chronicled IEX’s efforts in his book, “Flash Boys: A Wall Street Revolt.”  “It seems to me there is flexibility to try to address some of the issues from the standpoint of latency arbitrage that IEX tries to do,” Ketchum said.  “It should be judged on its own merits.”  As electronic trading approaches the speed of light, trading venues should have enough leeway to minimize speed as a key to trading success if it helps serve the interests of investors, SEC Chair Mary Jo White said during a June 2014 speech. If not, she said, the SEC should reconsider its rules and market practices that get in the way.  The SEC’s interpretive release was a step in that direction, Ketchum said.
http://www.reuters.com/article/us-finra-sec-iexgroup-idUSKCN0XO2MD

 

Eric Scott Hunsader ‏@nanexllc

Here’s how to shut up the #HFT fan boys with 1 tweet:  What’s wrong with this?
What Every Retail Investor Needs to Know

I get it. IEX passage kills Citadel/Knight/etc internalization which kills political donations in an election year. IEX in 2017?

Most retail brokers sell their orders to internalizers. Citadel is the self-proclaimed king of that dung heap.

If internalizers are executing retail orders and giving direct feed price, why do they use the SIP in 605 reports… hmmm?

All internalizers use microsecond or higher timestamps in their systems. Why aren’t they showing these to you! ? Because.. #rigged

If you haven’t heard this yet.. my interview on Peak Prosperity is brutally honest.

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