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

Germany Plans On Cyber Security Research To End Reliance On U.S. Tech

Fuchsia will kill Android by 2023: Top 5 facts about the new OS

New Study Finds Goats Interact More With Happy People

More than 32 thousand "smart" houses under threat of hacker attack

Internet addiction and children: Global plague

Apple takes up to develop Apple Watch for health monitoring

Hyperloop is growing in Europe

Analysts: US gamers prefer mobile games

Google Assistant Winner Of Head-To-Head Test Of Digital Assistants, Beats Siri And Alexa

Animals Can Burn Muscle To Supplement Body Water Needs, Finds A Study

World Politics

World & Politics

Is China going to cancel its birth limit policy?

The US is ready to start negotiations with China

US and China start 5G race

Is Czech Republic posing a threat to the European Union?

Myanmar Military Top Brass should be investigated and prosecuted for genocide: UN

France Needs To Recover From The Blow of Its Environment Minister’s Resignation

‘Disorderly Brexit’ Couldn’t Possibly Gain Anybody’s Interest, Says Maas

Venezuela comes up with a new monetary reform