December 13, 2015
Dear SEC
It should be obvious by now that High Frequency Trading firms have captured our markets and are holding them for ransom in order to extract an illegal "tax" on real investors through Latency Arbitrage.
Market Fragmentation, Payment for Order Flow and the endless pursuit of speed based advantage has come at the expense of and to the detriment of, every other segment of the investing population.
IEX is seeking to return our markets to one that favors long term investors - something the SEC has already agreed needs to happen through prior language and legislation (NMS).
Approving this application allows me to exercise my rights to direct my orders and route through the IEX router - something my broker currently cannot do due to Dark Pool status.
The HFT argument regarding an unfair "speed bump" is laughable at best. Citadel for example takes many many times longer to execute a retail order.
Flash crashes and dashes have become commonplace in the equities markets. This fragile structure created by HFT is what enables and propels these events.
HFT firms such as Citadel are slowly winding their tentacles throghout every aspect of our markets. From gaming retail orders through internalization, to violating and ignoring regulations to taking over high level positions in our regulatory agencies.
When does it stop? When is the average investor given precedence? When are the rules, YOUR rules going to be acknowledged and respected?
IEX NEEDS to exist to put an end to the invisible tax of HFT on each and every investor.
Lets start honoring the SIP and the NBBO process in a way that benefits the MAJORITY, not a small group of niche traders who are gaming the system and adding nothing in return.
Failure to approve this application unfortunately proves to all of us investors that the SEC is simply in the pockets of these firms and the revolving door from regualory to the very firms they're supposed to regulate will keep on spinning.
Approval is a must. The markets demand that SEC make a statement and allow IEX to usher in a new, fairer way of doing things.
Thank you for the time to add my two cents.