How to slow down a stock exchange

High-frequency traders have a few tactics on stock exchanges: but simply put, they gather price information faster than anyone else, sometimes even faster than the markets themselves, and use that to make a tiny profit many, many, many times. There are all sorts of solutions: but it turns out there's a simpler one that involves physics.

Thanks to Ronan and all the team at IEX - you can find out more about them here: https://iextrading.com/ or on Twitter at   / iex  

I fact-checked Ronan's claim about the SEC white paper because it seemed a bit too good to be true, but he's right: see Hu, E. (2018). Intentional Access Delays, Market Quality, and Price Discovery: Evidence from IEX Becoming an Exchange. SSRN Electronic Journal. https://www.sec.gov/files/07feb18_hu_... [PDF]

Edited by Michelle Martin    / @onthecrux  

🟥 MORE FROM TOM: https://www.tomscott.com/
(you can find contact details and social links there too)

📰 WEEKLY NEWSLETTER with good stuff from the rest of the internet: https://www.tomscott.com/newsletter/
❓ LATERAL, free weekly podcast: https://lateralcast.com/    / lateralcast  
➕ TOM SCOTT PLUS:    / tomscottplus  
👥 THE TECHNICAL DIFFICULTIES:    / techdif