IEX `Speed Bump' Seems to Comply With Rules, Finra CEO Says
- Regulations flexible to accommodate order pause, Ketchum says
- IEX is seeking approval from SEC to be official stock exchange
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IEX Group Inc. should have a clear path to winning Securities and Exchange Commission approval to be a stock exchange despite claims that its trademark speed bump would violate market rules, according to a top U.S. financial regulator.
IEX’s proposal to briefly pause incoming orders is probably consistent with rules that seek to ensure a fair and competitive trading environment, Rick Ketchum, the chief executive officer of the Financial Industry Regulatory Authority, said Wednesday. Regulations “should be sufficiently flexible” to accommodate IEX’s proposal as long as the delay is fully disclosed and found to benefit investors, he added.