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Published: Jun 16, 2016 1 min read
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 27, 2016. U.S. stocks edged higher, with the S&P 500 on course for its biggest weekly advance since March, while investors awaited remarks from Federal Reserve Chair Janet Yellen for hints on the timing of the next interest-rate increase. Photographer: Michael Nagle/Bloomberg via Getty Images
Traders work on the floor of the New York Stock Exchange (NYSE) in New York on May 27, 2016.
Michael Nagle—Bloomberg/Getty Images

Every day, high speed traders are buying stocks quicker than the average long-term investor, and selling them back at marked-up prices. IEX says it aims to level the playing field in the stock market by eliminating advantages for high-speed traders.

IEX is a stock market alternative that says it will protect the average investor. IEX creates a "speed bump" to slow down trading so traders can't use relatively higher speeds to their advantage. This delay slows every trader down by 350 millionths of a second. The "speed bump" will have little effect on investors looking for a long-term investment, says IEX.

Brad Katsuyama, President and CEO of IEX, hopes to have IEX approved by the Securities and Exchange Commission later this month.