Hector: Created page with "== Firm Involved == * IEX == Year of the event == 2016 == Description of the case == IEX became an approved stock exchange in 2015. Two particularities are noteworthy regard..."

2017-06-21T23:41:49Z

Created page with "== Firm Involved == * IEX == Year of the event == 2016 == Description of the case == IEX became an approved stock exchange in 2015. Two particularities are noteworthy regard..."

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== Firm Involved ==
* IEX

== Year of the event ==
2016

== Description of the case ==
IEX became an approved stock exchange in 2015. Two particularities are noteworthy regarding this stock exchange: it introduced a speed bump designed to prevent so-called “front-running” by HFT. It also introduced a complex order type called D-PEG. All this complexity leaves IEX as a marginal actor of the sector, with the most volume being dark-traded (20% lit volume), and with HFT such as Citadel regularly top trader. In addition, other stock exchanges also started their own DPEG/Speed bump, with less “pure” goals than IEX.

== Take-aways ==
* Introducing complexity creates even more unfair treatments.
* HFT always end up winning from added complexity.
* Good intentions sometimes end up harming the market.

HFT Thrive off complexity - Revision history

Hector: Created page with "== Firm Involved == * IEX == Year of the event == 2016 == Description of the case == IEX became an approved stock exchange in 2015. Two particularities are noteworthy regard..."