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When Brad Katsuyama was working on Wall Street, he saw that the stock exchanges were giving an unfair advantage to high-frequency traders that was costing his clients - pension funds, mutual funds and hedge funds. Worse still, the exchanges were making huge profits from selling this advantage. His response was to create the Investors Exchange, a stock exchange founded on the premise that people want to trade on a fair platform that doesn’t provide advantages to predatory traders.
In this episode of the Georgian Impact Podcast, Jon and Brad discuss how Brad broke the mold to create an exchange that is founded on building trust between all participants.
You’ll hear about:
- How unfairness in high-frequency trading led to the founding of IEX
- How exchanges work and how they are incentivized
- How IEX has built a different type of exchange based on trust
- Why trust is opening doors to new revenue streams
Who is Brad Katsuyama?
Brad Katsuyama is the CEO and co-founder of the IEX, the Investors Exchange. He co-founded IEX to create a fairer stock exchange. Katsuyama is the focus of Flash Boys, a Michael Lewis book about high-frequency trading.
Before founding IEX, he was the Global Head of Electronic Sales and Trading at the Royal Bank of Canada. There he was responsible for electronic sales, electronic trading, algorithmic trading, market structure strategy, client implementation and product management.
To learn more about IEX and their business, visit their website or check out the best-selling Michael Lewis novel Flash Boys: A Wall Street Revolt. You can read more about Georgian’s investment in IEX here.