For trading stocks and other securities there are stock exchanges, which are highly regulated. Then there are alternative trading systems, called “dark pools,” which are lightly regulated.
Now, there’s news on Wednesday that IEX, an upstart, alternative system, has gotten some big new investors to help it try to become a fully-fledged, regulated exchange.
IEX is designed to mute the effects of high-speed trading: advanced technology that some argue serves Wall Street middlemen and not investors. The CEO of IEX, Brad Katsuyama, was even cast as the protagonist in Michael Lewis’ best-selling critique of high-speed trading.
Click the media player above to hear Brad Katsuyama in conversation with Marketplace Morning Report host David Brancaccio.