Boy, it ain’t easy being A Flash Boys hero… Ya try to become an exchange, and the entrenched business models – they attack.
IEX’s stock exchange application has received a fair amount of public SEC comment letters.
In one letter by RT Leuchtkafer, RTL uses sarcasm to mock how absurd our cookie-cutter exchange model is, which sells faster access to the highest bidder. You must read that letter, if for no other reason than you need to have a good LOL at the SEC’s expense.
Pop quiz: What do you do if you are a stock exchange and on August 24th a good percentage of the Exchange Traded Product (ETP) market flash crashes with trades executed as far as 50% away from the their net asset value?
A) Invoke the Multi-Stock Event Clearly Erroneous Trade Policy and break all trades that occurred 10% away from the reference price.
B) Pretend that the trades never happened and propose (more…)