Good article demystifying the institutional trading systems. Gosh! From 30,000 ft, they all look the same
I was surprised they use IEX so much, but looking at their website, they are probably funded by them: “Our previous company, IEX, has done a wonderful job exposing many of the worst aspects of the stock market and offering an alternative model for a stock exchange: one that is fair and transparent. Our hope is to continue fighting the good fight, this time by focusing more specifically on questionable practices at the broker-dealer layer of the system, and again developing a better, fairer approach.”
Does their router impose the speed bump or speed bumps only for retail orders? https://iextrading.com/docs/IEX Router.pdf
It says that depends on order size. May be for retail - fading liquidity us not much of an issue in a liquid instrument. Institutions who don’t have their own algo and send a big order will have this issue.