The massive court case including Ken Griffin’s Citadel securities and IEX has finally came to a conclusion, and a positive one at that. The court officially ruled that IEX has won in the court case between the two parties which is going to mean that Citadel is likely to take a financial hit due to the contents of the court case (Which we will go over in a second).
The day has finally come, and Citadel Securities LLC lost its case against the US Securities and Exchange Commission over a market order type from IEX Group Inc., after arguing the SEC botched its approval – source: (Bloomberg)
This court case ruling is going to mean that high frequency traders or HFTs are going to be taking a hit, because they will no longer be able to take advantage of orders like they have been for years. Citadel along with many other hedge funds and firms profit from differences between brokers for example and even if each time they profit a small amount, they are able to do this millions and millions of times per year.
EX’s attorney Stetson said Monday that the D-Limit order type is an attempt to stop predatory trading. “I think what [Citadel Securities] is seeking is what we would say is unfair access because they are seeking to exploit that tiny moment of time when a price is changing, before other people, other liquidity providers and liquidity takers are able to get there,” Stetson said. “This is discrimination against a type of high-frequency trader that engages in predatory latency arbitrage.” – Source Protocol
IEX took to twitter to share their victory with excited retail investors in this awesome GIF. Could this be the start of a bigger movement and change to the markets as we know it.
D LIMIT ORDER TYPE
The D limit order type of more favorable for retail investors. The D-Limit Order is an artificial intelligence order type that protects displayed lit orders from being picked off by latency arbitrage players. The D-Limit Order aims to benefit displayed equity market quotes with better prices, larger displayed sizes and more competition among liquidity providers. – Source Johnlothiannews
This is a huge win overall for retail investors and puts one foot forward in the right direction for the future of regulation in the favor of the everyday investor for a change. Al though the market has many areas in which retail investors think need improvement, this could be the start of something great for us all.