Daily Management Review

‘Speed Bump’ Levels NYSE Exchange With ‘Regulatory Approval’


05/22/2017


The securities as well as the “Exchange Commission” of the U.S. approves the ‘speed bump’ delay for NYSE.



The New York Stock Exchange operators were permitted to use “a so-called speed bump” for “one of its exchanges” on Tuesday, the 16th of May 2017. This allowed NYSE to move “head-to-head with upstart rival the Investors' Exchange”.
 
The Intercontinental Exchange Inc. is the owner of NYSE Group, whereby the latter plans on adding a “fraction” of a second’s delay in the “incoming and outgoing orders on its NYSE MKT exchange”. This step has been renamed as “NYSE American”.
 
Moreover, the NYSE American will be designed on model that is similar to “IEX Group's Investors' Exchange”. The same will also include “a 350-microsecond delay”. However, “electronic market makers” will be there to put in place obligations that will ensure the ease in “trading of NYSE American-listed stocks”.
 
The speed bump of NYSE has received its regulatory approval from the “U.S. Securities and Exchange Commission”, whereby turning into the second exchange of the U.S. that exhibits with “an artificial delay”. According to Reuters:
“IEX, which pioneered the device, was thrust into the spotlight before it even had an exchange license when author Michael Lewis featured the upstart in his March 2014 book, ‘Flash Boys: A Wall Street Revolt,’ which followed the group as it built what it saw as a fairer, simpler market”.
 
Thus, giving rise to “a fierce debate” both from the Wall Street as well as the Main Street. As per Lewis, exchanges grew “profit-hungry” turned towards “high-frequency trading” firms’ favour. Therefore, the “speed bump” acts as a levelling device on the markets’ playfield. While, John McCrank added:
“NYSE vehemently opposed IEX's exchange application, saying the model was bad for the market, but later said it planned to copy aspects of the newest U.S. exchange in order to better compete”.
 
 
References:
http://www.reuters.com







Science & Technology

Is UAV drone industry falling into decay?

UK Scotland Yard employs AI to deal with frauds

US sets to fight robocalls outbreak

Top 7 green energy innovators

Volvo’s New Car Uses Blockchain For Recycled Cobalt

False Memories Can Be Created By Fake News On Social Media, Shows A Study

DEF CON Hosts Auto-Makers And Cybersecurity Enthusiasts

WHO found no danger in microplastics in drinking water

Apple starts testing Chinese OLED screens for iPhone 12

Analysts: Google Search is losing clicks

World Politics

World & Politics

US FAA invites representatives from 50 countries to discuss 737 MAX certification

Iran Blamed By US’s Pompeo For The Drone Attacks On Saudi Oil Facility

IMF: Georgieva is the only candidate to replace Lagarde

Saudi Arabia to issue tourist visas

USA introduces sanctions against Iranian space agencies

Investments continue to flow into Cape Verde and exceed expectations of Minister of Finance Olavo Correia

USA, UK to create a working group on economics

Global Fashion Companies Support Environment Protection At G7 Summit