What Happens When You Hit Buy

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CFA Institute. CFA Institute is a global association of investment professionals, whose mission is to lead the investment profession by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society. CFA Institute serves a global community of investment professionals working to build an investment industry where investor's interests come first, financial markets function at their best and economies grow. The Chartered Financial Analyst credential is the most respected and recognized investment management designation in the world. The views expressed in this podcast do not necessarily represent the views of CFA Institute.

[00:01:50] – (First Question) Brad’s original discovery of a latency problem in trading stocks

[00:10:41] – How the business model of the NASDAQ and exchanges and how it may surprise people

[00:12:06] – The edge that exchanges are now monetizing

[00:14:36] – How Brad went from finding a solution to his current firm

[00:18:08] – Types of high-frequency traders that there are

[00:22:23] – The formation of IEX

[00:25:36] – Funding IEX

[00:28:38] – What happens to the initial funding 

[00:30:20] – Describe what IEX is as it was sold to early buy-side investors 

[00:32:21] – Explaining the concept of a speedbump

[00:36:08] – Pitching companies so they will be listed on their index

[00:38:27] – Explains maker-taker fees

[00:42:37] – The sources of revenue for IEX vs traditional exchanges 

[00:44:43] – Most memorable meeting Brad has had in establishing IEX

[00:47:29] – How did he do this with young kids?

[00:50:28] – Has the pool of potential profits that high-frequency trading firms can earn gone down 

[00:51:43] – What has Brad most excited about the future in terms of helping the buy-side

[00:53:07] – What was it like to see Brad’s venture get turned into a best-selling book

[00:56:50] – Biggest thing that Brad has learned

[00:58:46] – What would Brad do if he couldn’t work in the investing world.

[01:00:15] – Kindest thing anyone has done for Brad