Nasdaq to add new order type in effort to beat IEX

Nasdaq’s CEO Robert Greinfeld is trying to figure out how to use IEX’ focus on slowness for its own advantage. In Nasdaq’s view, the fact that the SEC approved an exchange that delays quotes by a non-trivial factor gives Nasdaq license to become more creative in designing its own marketplace and matching logic. (Automated Trader)



Nasdaq Tries to Appeal to Investors Lured by New Rival IEX

In the latest sign that American stock exchanges are inching away from a decadelong arms race toward ever greater speed, Nasdaq Inc. plans a new option for investors who complain they can’t keep up with rapid-fire trading. The move shows how exchange operators are angling to respond to IEX Group Inc., the startup that won regulatory approval in June to launch a market that slows the pace of trading. (Wall Street Journal)


Nasdaq: An Embarrassment Of Embarrassments

“SOES BANDITS.” Market makers don’t think they’ll get anything in return from NASDAQ. In the past few years, for example, many market makers have complained bitterly about some small firms that make big money at the expense of big firms by jumping on price discrepancies through a mechanism called the Small Order Execution System. SOES was designed to allow small investors to trade directly on an electronic NASDAQ system, and the large firms thought it was abusive. Market makers wanted the “SOES bandits” banned, but the NASD had trouble adopting even modest reforms. (Bloomberg)