New stock ex­change will de­lay trades

Northwest Arkansas Democrat-Gazette - - BUSINESS & FARM -

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.

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