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)

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Renaissance Technologies to Close $1 Billion Hedge Fund

Hedge-fund giant Renaissance Technologies LLC is shutting an underperforming fund “due to a lack of investor interest,” according to a letter to investors reviewed by The Wall Street Journal. The $27 billion firm said it would wind down its Institutional Futures Fund, which manages $1.3 billion, by the end of the month. The fund was down 1.75% this year through September. (Wall Street Journal)

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All-Tech’s Harvey Houtkin Agrees to Fine, Suspension

Securities regulators took a high-profile stand to stamp out alleged abuses in the freewheeling business of “day trading” of stocks. In two separate legal actions, All-Tech Direct Inc., one of the nation’s largest day-trading firms, and several of its executives agreed to pay a total of more than $600,000 in fines to settle regulatory charges of arranging improper loans to clients, among other things. Harvey Houtkin — All-Tech’s chairman and chief executive officer, and the self-proclaimed father of day trading — agreed to a $50,000 fine and a 15-day suspension from the securities industry as part of a settlement with the National Association of Securities Dealers. (Wall Street Journal)

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‘SOES Bandit’ Firms To Tap IPO Market

They’ve often been called SOES bandits on Wall Street, but now two of the biggest electronic day-trading companies are taking another step toward the mainstream, unveiling plans to tap the IPO market. Momentum Securities Management Corp., of Houston, is considering an initial public offering that would raise $25 million, its president, James Lee, said. Momentum Securities is following the lead of All-Tech Investment Group Inc. of Montvale, N.J., which filed plans for an IPO with the U.S. Securities and Exchange Commission in late May. (Wall Street Journal)

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SOES Bandit Datek Securities Seeks New Image On Internet

One of the fastest-growing on-line brokerages has a reputation as a bandit. But Datek Securities Corp. – a “SOES bandit” firm known for its rapid-fire use of the Nasdaq Stock Market’s Small Order Execution System – is shifting its focus to a more straightforward business: executing stock trades over the Internet. (Wall Street Journal)

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