Business Commons^™

The Role Of The Iex In A Fragmented Market System, Cameron Spicer

Honors College

Over the past several decades, the secondary market system has evolved into a more complex and fragmented system than it once was. The Investor’s Exchange (IEX) emerged in 2014 in rebellion of purportedly unethical High-Frequency Trading (HFT) behaviors in the markets. Using a novel, proprietary model for trade matching along with providing other services, the IEX has become a respectable player in the market system that prides itself on transparency and fairness. This paper explores the role that IEX has played in market fragmentation since its inception using empirical and historical analysis. The empirical analysis focuses primarily on a recent …