MMI CEO in Financial Times: SEC interpretation could lead to IEX copycats

Nicole Bullock reports that last week the Securities and Exchange Commission (SEC) said it would continue weighing the application from IEX, which imposes a 350-microsecond delay on orders.  In a preliminary interpretation, the SEC said delays of less than a millisecond might be “de minimis” and thus in the spirit of existing rules. Bill Harts, chief executive of Modern Markets Initiative, an association for high­ frequency traders, said he opposed defining de minimis as a millisecond. “Investors deserve to know the best price for their stocks at all times,” he said. “Allowing exchanges to hide those for a period of time, whether intentional or not, runs counter to the principles that have made our markets the best in the world.”