July 10 (Reuters) - Trading and market making firm Virtu Financial threw its support behind a proposal by IEX to launch a new U.S. options exchange, saying the initiative could promote competition and innovation.
In a letter to the Securities and Exchange Commission dated July 9, Virtu called IEX's proposed platform a "well-intentioned" step that could benefit retail investors and enhance transparency.
IEX has proposed an options exchange that would introduce a 350-microsecond delay on trades, a speed bump aimed at curbing advantages held by high-frequency traders and leveling the playing field for other market participants.
However, the plan has sparked debate. Market maker Citadel Securities and the Securities Industry and Financial Markets Association urged the SEC to reject the proposal, arguing that the speed bump could affect market dynamics and price discovery.
Virtu, meanwhile, said it supported efforts that "enhance the investor experience".
"We believe that the introduction of new trading venues has the potential to promote competition, foster innovation and possibly deliver better trading outcomes for all market participants," Virtu wrote.
(Reporting by Niket Nishant in Bengaluru; Editing by Shreya Biswas)
((Niket.Nishant@thomsonreuters.com;))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.