SEC personnel recommends approval of IEX, approval likely quickly: WSJ

© Reuters. To match Unique Report SEC/INVESTIGATIONS

By Chuck Mikolajczak New York City (Reuters) – The U.S. Securities and Exchange Commission is preparing to act on a questionable demand by brand-new trading group IEX Group Inc to launch a new U.S. public stock market, and has actually received a recommendation from its personnel that it approve the exchange, according to a Wall Street Journal report on Tuesday. The proposed exchange from IEX, made popular by the Michael Lewis book “Flash Boys: A Wall Street Revolt,” is noteworthy since it would be the only one in the United States to consist of a so-called “speed bump” – a 350 millionths-of-a-second delay in all inbound and outcoming orders. The theory behind that, according to IEX, is that it protects financiers from high-frequency traders who can detect trading signals and use their faster technology to electronically front-run slower financiers. Other exchanges, consisting of Nasdaq (O:-RRB-, the New York Stock Exchange (N:-RRB- and BATS Worldwide Markets (Z:-RRB- have actually been vocal in their opposition to an IEX approval. Nasdaq has actually recommended that any SEC approval could be challenged. The SEC is dealing with a June 18 due date to act on the IEX proposal. An internal source told Reuters that the commission wanted to see competition to the existing design of electronic trading and order execution, and was not likely to miss that due date. The WSJ report stated the commission was most likely to vote on the order Friday and that approval was most likely. Disclaimer: Combination Media want to remind you that the data consisted of in this website is not necessarily real-time nor precise. All CFDs (stocks, indexes, futures) and Forex costs are not provided by exchanges however rather by market makers, and so rates may not be precise and might vary from the real market value, suggesting prices are a sign and not appropriate for trading purposes. For that reason Blend Media does n`t bear any responsibility for any trading losses you may sustain as a result of using this data. Blend Media or anybody involved with Combination Media will not accept any liability for loss or damage as an outcome of reliance on the details consisting of data, quotes, charts and buy/sell signals contained within this site. Please be completely informed concerning the dangers and expenses related to trading the financial markets, it is among the riskiest financial investment types possible.

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