An Alternative Stock Market

The transcript discusses high frequency trading (HFT) and its impact on the financial market. It highlights the issues with exchanges selling high-speed data, which allows certain traders to gain unfair advantages. IEX, a new exchange, was created to address these issues by implementing a speed bump to level the playing field. The transcript also covers the challenges IEX faced, its growth, and predictions for the future of trading. Audience questions further explore these topics.

What was the primary reason for the speaker to start IEX?

• To increase personal profits

• To address the issues caused by high frequency trading

• To compete with NASDAQ

• To create a new trading algorithm

How does IEX aim to protect investors from high frequency trading?

• By implementing a speed bump to delay trades

• By partnering with major banks

• By offering lower trading fees

• By providing exclusive trading data

What was a major challenge IEX faced in becoming a stock exchange?

• Technical difficulties in setting up the platform

• Lack of investor interest

• Regulatory issues with the SEC

• Aggressive lobbying by existing exchanges

What is the main benefit of IEX's speed bump for pension funds?

• It allows them to trade in international markets

• It increases their trading speed

• It reduces unnecessary trading costs

• It provides them with exclusive market data

What is the financial impact of high frequency trading on pension funds?

• It increases their returns significantly

• It has no impact

• It provides them with better market insights

• It costs them billions of dollars

What is the SEC's stance on the rebate system used by exchanges?

• They have banned it completely

• They are testing its elimination

• They are unaware of it

• They fully support it

How does IEX's approach to trading data differ from other exchanges?

• They charge higher fees for data access

• They do not provide any trading data

• They limit data access to select clients

• They make their data free and accessible

What is the expected trend for high frequency trading volume in the future?

• It will be completely eliminated

• It will increase to 80%

• It will decrease to 30-40%

• It will remain the same

What is IX Cloud's primary purpose?

• To offer free financial data to researchers

• To provide high-speed trading services

• To develop new trading algorithms

• To compete with gaming companies

What is a potential future application of IEX's technology outside of finance?

• Real estate transactions

• Competitive gaming

• Healthcare data management

• Automobile manufacturing