December 14, 2015
Dear SEC,
I would like to state my support to the IEX application to become an Exchange with a PROTECTED QUOTATION.
I am a software engineer and I understand how the current stock market is currently being gammed. I have personally moved from a more active investiment to a more passive because of the lack of transparent exchanges.
I actually don't understand why SEC has not yet made a regulation demanding all exchanges to make their order routing transparent and testable.
In any other area this would not be acceptable. I know there is a huge industry that is feeding from this. But you have to ask how long before something terrebly wrong happens? Besides do you really believe it is fair that exchanges can route your orders for their beneffit?
On long term SEC not only should b ut MUST support transparent exchanges with protected quotation. This will make many more people start investing.
Latency arbitrage should be illegal, or at least Exchanges that profit from it should offer its client the chance to allow in exchange for a lower fee or not allow and always get the real-price. Those technology based arbitrage in my eyes are inacceptable.
I think there are plenty of unbiased research out there (Not the ones funded by the High frequency traders) that shows the impact of this predatory technology in the market.
I hope you make the right decision on this matter.
Best Regards,
Lucas Serpa Silva