IEX stock is falling in the wake of a damning report from the SEC.
IEX, an upstart stock exchange known for its speed bump, is facing some serious backlash after a report from the Securities and Exchange Commission (SEC) found that it was not fully compliant with regulations. The exchange has since responded to the allegations, but its stock is still falling.
What is IEX?
The Intercontinental Exchange’s (ICE) IEX Stock Exchange was launched in 2012 as an alternative to other exchanges. The IEX has often been touted as a solution to high-frequency trading (HFT), which many believe causes market volatility and unfair advantages for traders who are able to trade faster than others. The exchange also features a so-called “speed bump” that slows down orders for 350 microseconds. This makes it more difficult for traders to take advantage of others by front-running their orders.
Criticism
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“A Better Stock Market”
“Critics say that IEX’s main goal isn’t actually to make markets fairer or more transparent but simply to steal business from other exchanges.” — “A Better Stock Market”, The New Yorker, October 12th, 2021.
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“A Long Way From Being Compliant”
“The SEC concluded that IEX failed to register as a national securities exchange or alternative trading system with the regulator before beginning operations, as required by federal law.” — “A Long Way From Being Compliant”, The New York Times , October 12th, 2021.
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