This morning we want to alert you to an article in the Wall Street Journal titled A Nasdaq Speed Upgrade is Threatening IEX. The article is about how NASDAQ is speeding up the SIP for Tape C securities, which it operates. It’s about how a participant to a trade on IEX will therefore know about its fill faster through the SIP than through IEX as a result. The implication/conclusion is that such a trader might be able to then race to other away exchanges in a race, and “beat” an order routing to sweep the market originating at IEX, thereby (more…)

  This is awesome. There is no other way to describe this academic study, which will make you (as investors) sing, dance, and rejoice when it rains. For a decade we have argued that with regard to speed, our modern markets have “jumped the shark.” While proponents of Modern Markets have argued that speed has improved liquidity and tightened spreads, we have argued the opposite. First, spreads have not meaningfully narrowed in a decade, and in fact have widened some. Second, there is a big difference between liquidity and volume. Anywho… researchers from Canada’s Wilfrid Laurier University, drawing on some (more…)