INSUBCONTINENT EXCLUSIVE:
When you watch a commercial for one of the major stock exchanges, you are welcomed into a world of fast-moving, slick images full of
glistening buildings, lush crops and happy people
Brad Katsuyama, co-founder and CEO of IEX (a.k.a
market was rigged, really badly.Five years later, some of the worst practices Lewis highlighted are things of the past, and there are
several attributes of the American equity markets that are widely admired around the world
In many ways, though, the realities of stock trading have gotten more unseemly, thanks to sophisticated trading technologies (e.g.,
microwave radio transmissions that can carry information at almost the speed of light), and pitched battles among the exchanges, investors
trade to sausage-making is an insult to kielbasa
More than ever, trading is an arcane, highly technical and bewildering part of our broader economic infrastructure, which is just the way
many industry participants like it: Nothing to see here, folks.Meanwhile, Katsuyama, company president Ronan Ryan and the IEX team have
powerful incumbents that seem increasingly emboldened to use their muscle in Washington, D.C
global exchanges such as the Hong Kong Stock Exchange seek to bulk up by making audacious moves like attempting to acquire the venerable
London Stock Exchange.
But when you sell such distinct advantages to one group that really can only benefit from that, it leads to the
question of why anyone would want to trade on that market
As my discussion with Katsuyama reveals, IEX may have taken some punches in carving out a position for itself in this high-stakes war
characterized by cutting-edge technology and size
However, the IEX team remains girded for battle and confident that it can continue to make headway in offering a fair and transparent option
like to establish something upfront
Does IEX exist for the asset manager, the individual, or both?Brad Katsuyama: We exist primarily for the asset manager, and helping them
Only brokers can connect to exchanges, and the asset manager connects to the broker.Schoenberg: To put a finer point on it, you believe in
fairness and being the good guy
But you are not Robinhood
You are a capitalist.Katsuyama: Yes, but we want to make money fairly
Actually, we thought initially about starting the business as a nonprofit, But once we laid out all the people we would need to convince to
equity market today primarily serves investors or traders?
