The "Flash Boys" of IEX are the techie moral Pinocchio of Wall Street. A dark pool with a beautiful soul that just wants to become a real exchange.
And the SEC is IEX's Blue Fairy, a magically powerful regulator that can make this beautiful dream come true...that is, as long as it's cool with everybody.
So, what do you think Goldman Sachs, is it time to let IEX see its dream come true?
We support IEX's application to become a stock exchange because we believe that the approval of the application is consistent with the broader goal of enhancing the quality of equity markets.
Oh, how wonderful! Full-throated support of Brad Katsuyama and his guys to become a bona fide place where money can change hands in milliseconds and no one goes to federal prison. Let's get this don... what's that Goldman? You have something to add? Why are you whispering?
We recognize that IEX's innovative model and its approach to pricing, execution and post-trade analysis, as discussed more fully below, has highlighted various issues related to the ongoing equities market structure debate. In our view, this debate presents the Commission with a timely opportunity to address broader market structure issues
Oh, so this is one of those "IEX is our friend, but..." situations?
For example, we are concerned that exchange-affiliated routing broker-dealers may have access to and use the proprietary market data of the exchange to benefit their own order routers. Consistent with the themes raised by the industry in the SIFMA letters, we urge the Commission to undertake a review of the structure and operations of exchanges to ensure that there are adequate regulations enforcing the arms-length separation between their operations as public exchanges and those as non-public broker-dealers.
Wow Goldman, IEX thought you were a bro...