January 8, 2016
It would appear that a failure to favorably affirm IEX's application would send a strong message to investors that speed is more important than fairness in equity trading. Latency arbitrage is an insidious and unjustifiable advantage for those who practice it, at the expense of those who cannot. When certain of the exchanges earn exponentially more from co-location than they do from market-making, it would appear that said exchanges' missions have been corrupted. For the SEC to side with these objectors of IEX would imply that the commission endorses latency arbitrage as a legitimate form of trading. This would only serve to reinforce the growing belief by many investors, including the sophisticated supporters of IEX, that the equity markets do not serve all fairly or equally. Supporting the IEX application would send a clear and convincing message that the SEC's initial charter to maintain orderly and fair equity markets continues to be the primary mission of the SEC.