IEX exchange being sued

Discussion in 'Wall St. News' started by 777, Mar 3, 2018.

  1. 777


  2. His claim to fame is discovering network latency, blaming it on exchanges, and selling it to other institutions who are also willfully ignorant.

    His solution is introducing something like a half second interval between trading rounds.

    Cringe material:

    He reminds me of the guy who cried about hide-not-slide.
  3. d08


    New to trading, are we?
    dealmaker likes this.
  4. The problem with Brad (Katsuyama) is that he has antagonized I would say a lot of Wall Street firms. I have met some of the IEX guys, and had a cup of coffee in their offices. I like them, and I agree to some extent about Brad's "observations" on the market, maybe not his conclusion (that the market is rigged and needs a completely difference competitor like IEX).

    The reality is that most buy-side clients (retail or even institutional), either doesn't care, or would just route their order to the most liquid destinations (rigged or not). And because has completely antagonized the Wall Street firms (brokers), the brokers are flat out refuse to route their orders to IEX, it is as simple as that. So IEX is struggling to gain market share (I think around 2.5% last time I checked). And by claiming the big boys are all rigged, NYSE, Nasdaq and other exchanges are trying hard to stop IEX from even gaining regulatory approval (make sense, right?). Wall street is a symbiotic environment, so I don't know how IEX can gain massive market share. Buy side funds (let's say, oh, Citadel, SAC or the current incarnation, Point72), relies on sell-side firms to give it insights, so why would they route their orders to IEX just because it maybe 0.5% cheaper in execution costs?

    I am just amazed that these lawsuits haven't happened earlier and more frequently, with the plaintiff firms hoping that IEX would just get buried by legal fees and throw in the towel. Look at BATS, which got started maybe 3 yrs before IEX, how much % of US equity market it has.