Cboe Global Markets Inc. CBOE, +0.18% is seeking to introduce a brief delay on one of its markets, becoming the latest U.S. stock-exchange group to attempt to hit the brakes on high-frequency traders, people familiar with the situation said.
The plan shows how “speed bumps” have proliferated among U.S. exchanges in recent years, even at market operators that initially opposed them. IEX Group Inc., the upstart exchange featured in Michael Lewis’s book “Flash Boys,” kicked off the trend and has since been followed by the New York Stock Exchange and others.
Speed bumps work by imposing a delay on orders to trade stocks, typically a fraction of a second. Proponents say that can foil high-tech traders that make money by forecasting tiny market moves and quickly buying or selling shares before others realize that prices are shifting.
Cboe hopes to add a speed bump to EDGA, the smallest of its four equities exchanges, people familiar with the situation said. The company has presented its plans to major trading firms in recent months, these people said.
An expanded version of this report appears on WSJ.com
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