Citadel Steps Up Criticism of IEX's Plan to Start New Exchange
- Firm sends second letter to SEC critiquing IEX's proposal
- IEX has vowed to diminish advantages held by speed traders
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Citadel LLC is stepping up its criticism of IEX Group Inc., arguing that the company’s plans to start an exchange that tries to level the playing field between firms with the fastest technology and other traders will actually hurt stock markets.
In its second letter to U.S. regulators on IEX’s proposal, Citadel said the exchange application lacks sufficient information and could “harm market quality.” Citadel took particular exemption with the disclosure around IEX’s trademark “speed bump,” a coil of wire purported to prevent faster traders from taking advantage of slower ones by delaying all incoming and outgoing orders by a fraction of a second.