One of the four NYSE exchanges is changing its name and introducing a speed bump, roughly one year after Intercontinental Exchange Inc. CEO Jeffrey Sprecher said allowing IEX Services LLC to use a speed bump would be "un-American."
NYSE MKT, the exchange introducing its own speed delay, is changing its name to NYSE American.
The name hearkens back to the exchange's past as the American Stock Exchange, ICE said in a news release. NYSE Euronext acquired the exchange in 2008. ICE is the parent company of the NYSE Group of exchanges.
NYSE American will impose a 350-microsecond delay upon order entry, proprietary data and outbound routing, the company said. That delay is the same length as the speed bump at the heart of IEX's long, contentious fight to become a national stock exchange offering protected quotes. ICE, Nasdaq Inc. and many high-speed trading firms bitterly resisted IEX's approval by the SEC, which was granted in June 2016.
"NYSE Group will ultimately operate four distinct exchanges for issuers and investors, each with its own market model," NYSE President Tom Farley said in a statement. NYSE MKT caters to small and midcap issuers.
During a February 2016 conference call, Sprecher asserted that exempting IEX from a trading rule that requires trades and data to be processed "as soon as technically practicable" would make IEX into a regulated monopoly.
"It is un-American, and it's not fair, and it's not the way that our system should work," Sprecher said.
In March 2016, it was reported that NYSE, Nasdaq and Bats Global Markets Inc. were considering ways to introduce their own speed bumps to their exchanges.