The poll at CNBC showed public opinion strongly favoring Brad Katsuyama over HFT whore Bill O’Brien. Now, it turns out that O’Brien actually lied about how his BATS exchange works. New York’s Attorney General has required him to print a retraction in the Wall Street Journal. In the video, you see Katsuyama catch him out, while the crowd cheers – literally, a cheering crowd on the floor of the New York Stock Exchange.
“You want to do this? Let’s do this,” Katsuyama said in response to O’Brien’s prodding.
The beauty of Katsuyama’s idea is that, since the SEC won’t act, he will provide a market solution. Katsuyama has invented an HFT free exchange, called IEX. If you are tired of getting scammed, you can switch. Already, two leading brokers have switched to his exchange – and the book only came out on Monday. One, Interactive Brokers, is the ne plus ultra of trading platforms. We expect investors to flee BATS like the fall of Saigon.
Update: July 22, 2014, O’Brien gets the sack. See Bloomberg.