At the start of 2018, Brad Katsuyama and his leadership team at the Investors Exchange (IEX) had much to be proud of - and much to worry about - as they contemplated the rollout of their latest innovation in equity trading. In a trading landscape increasingly defined by issues related to speed, IEX was building a reputation as a thoughtful innovator trying to level the playing field for its clients. In many ways, the short history of IEX and the longer history of its founders were at the center of the often baffling and complex repercussions associated with the advent of electronic trading. Now, IEX was about to implement a "Crumbling Quote Remove Fee" that would help protect clients from predatory trading strategies designed to exploit speed-induced market distortions. Katsuyama and his colleagues hoped this would increase fairness in the market, but at the same time were concerned about copycats, potentially negative reactions from market participants, and whether the new Remove Fee would actually accomplish its goal of creating fairer markets.
