The SEC approved IEX’s application to become a recognized exchange. This is a huge step forward, because IEX’s main feature is a 350-microsecond “speed bump” that delays orders. This delay removes the advantage of the collocated HFT thieves. The SEC went further to say that delays of up to a millisecond are considered negligible because they are small compared to the network delays that most users receive.
IEX will be coming online in August and September and will probably receive a lot of business from institutions who are tired of being preyed on by the never-lose cheats. And of course from anyone else who can control the routing of their trades.
This really means that the speed wars are over. The cheaters will have to find another way. Finally.