IEX has a history of innovative order types, and its latest proposal, for the D-Limit order type, has the potential to help clients avoid being picked off in the lit market by faster traders, acknowledges TABB Group founder and research chairman Larry Tabb. But D-Limit orders circumvent the IEX speed bump, which could be problematic, he adds. In this week’s video editorial, Tabb discusses the potential unfair advantage created by the D-Limit order type when combined with IEX’s speed bump as well as the challenges created by the Order Protection Rule and price-time priority.
Related article: “The IEX D-Limit Proposal: It’s Good … But What If It’s TOO Good?”
Source: TABB TV
Categories: Equities, Fintech / Crypto, Regulatory
Topics: Equity trading, IT governance/infrastructure, Market structure: Exchanges, ATSs, ECNs, Market Surveillance/Technology, Trade Process Analysis, Trading technology infrastructure