February 9, 2016
In light of the recent letter submitted by the New York Stock Exchange, I think the Commission now has enough information to realize the double standard that is in place with regards to the existing exchanges.
As noted in the IEX public statements, the NYSE introduced its own delay of 300 microseconds by splitting its gateway access across two different standards.
Why they did not feel this was important to mention and submit to the SEC is quite frankly, baffling and astounding.
Apparently, their 300 microsecond delay didn't need to be mentioned but the 350 microsecond delay proposed by IEX is the equivalent to a "doomsday device" for the current market environment?
Everything that has come out publicly and in these comment letters from those who oppose IEX speaks to one goal: Protect high frequency traders and make sure that nothing stands in the way of their risk free profits from latency arbitrage and the sale of direct feeds.
Is this what is laid out in the exchange act and Reg NMS? Anyone who thinks it is needs to ACTUALLY READ those documents.
The IEX exchange needs to be approved immediatley, as filed.
But that's not enough. Everything needs to be slowed down. Quotes must be allowed to reach every corner of our Nation before they can be cancelled.
The National Best Bid/Offer is just that - a NATIONAL market. In the current structure, over 30% of all quotes are cancelled before they reach the Western U.S.
How is that possible and still have an NBBO?
The entire structure and system is geared towards one small group of participants who add nothing to our markets except an invisible tax on all transactions while injected instability into market structure.
The time to end this corruption and graft is now.
IEX must be approved as filed.