New stock exchange will delay trades
NEW YORK — The New York Stock Exchange’s response to industry newcomer Investors Exchange Group Inc. is open for business.
Called NYSE American, the newest U.S. stock exchange went live Monday with a feature IEX first made famous: a 350-microsecond delay on orders, a speed bump that blunts some speed-driven trading strategies.
NYSE American marks something of a reversal. NYSE Group Inc., its parent, was among a group of exchanges and trading firms that spent months railing against IEX’s proposal to become an official stock exchange with an intentional delay on orders. Now, less than a year since IEX began operating as one, NYSE reversed course by creating a venue that employs the same strategy, while charging less for some trades.
“There’s irony here given NYSE’s original position,” said Jon Clark, chief executive officer of private trading venue Luminex Trading & Analytics LLC.
NYSE Group operates three exchanges, the largest of which is its flagship New York Stock Exchange.
Kristen Kaus, a spokesman for NYSE Group, declined to comment on the overhaul.
IEX handles about 2 percent of U.S. trading, according to data compiled by Bloomberg.