Live Coverage Feed 22 hours ago ‘Flash Boys’ Exchange IEX Has Criticized Rebates. Now It’s Adopting Them. By Alexander Osipovich , Reporter IEX CEO Brad Katsuyama has previously criticized rebates. (brian snyder/Reuters) IEX, the upstart stock exchange made famous by Michael Lewis’s book “Flash Boys,” has adopted a controversial practice that it previously criticized as harmful to investors. The New York-based exchange will start paying rebates to brokerages and trading firms that publicly post new orders on its marketplace, a way to encourage them to quote prices for more stocks, according to a filing submitted Tuesday with the Securities and Exchange Commission. IEX had previously campaigned against rebates. Critics of the practice have said that they create a conflict of interest by encouraging brokers to route customers’ orders to exchanges that pay the biggest rebate, rather than to the exchange that would give investors the best price. “In short, rebate practices cause clear and significant harm to investors,” IEX Chief Executive Brad Katsuyama said in 2017 congressional testimony. In a statement Wednesday, IEX President Ronan Ryan said the exchange was structuring its rebates in a fairer and more transparent way than the complex tiering system used by many of its larger rivals, which grants some firms bigger rebates than others. Firms that display orders to buy or sell stocks on IEX will get a flat rebate of four cents per 100 shares, he said. “IEX continues to believe that the markets would be better served without rebates and will support any future efforts taken by the SEC to restrict or eliminate them,” Ryan added. Supporters of the practice say rebates help create deeper, more liquid marketplaces and more public data about stock prices. Adding rebates could also boost IEX’s market share. Founded in 2012, IEX handles about 2% of daily U.S. stock-trading volume, far less than rivals such as the New York Stock Exchange, Nasdaq and Cboe Global Markets, all of which pay rebates.
Cock-sucker. He's following the money, and SCREW his customers. Good on you, you greedy capitalistic hypocritical asshole.