High-frequency trading, as documented in the best-selling Flash Boys: A Wall Street Revolt, has been the subject of several high profile legal settlements with major banks involved in “dark pools,” and other trading issues. Startup dark pool IEX—featured in Flash Boys—has filed a petition with the Securities and Exchange Commission to be recognized as a securities exchange. IEX offers a novel proposition to investors to vigilantly offer “fair” exchange practices that disarm predatory high-frequency traders. The startup exchange raises complex questions regarding the intersection of securities law and enforcement with modern trading technologies.
This briefing for senior-level Congressional staff discussed the regulation of high-frequency trading and IEX’s proposal to provide a market-based response to a potential problem in the market.
This Congressional Civil Justice Caucus Academy featured:
Founding President and Chief Executive Officer, IEX TradingBrian F. Mannix
Research Professor, Regulatory Studies Center, George Washington University
Program Assistant, CCJCA