IEX CEO Says Exchanges Must Be Referees of Fundamentals, Speed

The video discusses the differences in decision-making speeds between machines and humans, highlighting the role of high frequency trading in market volatility. It examines the responsibilities of exchanges in maintaining market stability and the implications of exchange ownership on market dynamics. The video also explores the effects of rebates and discounts on execution quality and outlines IEX's growth and future plans.

What is a significant risk associated with high-frequency trading?

• Slower decision-making

• Reduced market liquidity

• Market volatility spikes

• Increased transaction costs

What is the purpose of implementing a speed bump in stock exchanges?

• To enhance data privacy

• To increase trading volume

• To create a level playing field

• To reduce transaction fees

Why are stock exchanges maintaining multiple operating exchanges?

• To reduce operational costs

• To separate buyers and sellers

• To increase competition

• To simplify market regulations

What is the impact of exchanges selling high-speed data and technology?

• It decreases trading volume

• It increases their revenue

• It simplifies market operations

• It reduces market transparency

What is a key feature of IEX's business model?

• Charging high transaction fees

• Focusing on execution quality

• Offering high rebates to brokers

• Limiting trading hours

How does IEX differ from other exchanges in terms of rebates?

• IEX does not pay rebates

• IEX pays rebates to asset managers

• IEX offers higher rebates

• IEX rebates are based on trading volume

What challenge does IEX face as an independent exchange?

• Limited trading hours

• Regulatory restrictions

• Lack of investor interest

• Competition from larger exchanges