December 15, 2015
To the SEC, on granting IEX's application to become an exchange with protected quotations:
I trust that in your role as a regulator, with prudential authority to make sure markets are safe and fair for investors, you will not be influenced by the shameful and desperate lobbying against IEX's application from established exchanges such as NYSE, BATS, and Nasdaq etc. I have read their letters against the IEX application, and find their arguments are not based in fact, but fear.
Of course these other exchanges don't want an exchange introduced which eliminates the ability of intermediaries to 'front run' orders by predatory 'latency arbitrage'.
Isn't your role to protect long-term investors over short term professional intermediaries? Billions in fees are lost through the current 'legal' arrangement where money buys high speed access.
IEX is actually making your job easier. Rather than having to introduce new regulations to contain this dangerous and destructive, but legal, predatory behavior, IEX is working within existing regulations, using technology to even the playing field.
I am asking Vanguard to route my orders to the IEX exchange.
Let the market decide what investors want. Likely millions will migrate to IEX as it is the only exchange which has addressed the dark and dangerous side of how electronic stock trades actually happens in America today.
Please base your decision to grant IEX's application on the best interest of investors, not the interests of predatory intermediaries.
Sincerely,
Mallory Buckingham