The Securities and Exchange Commission (SEC) has approved a proposed change to the rules of the Investors Exchange LLC (IEX). This change will reduce the delay time for messages sent from IEX back to its users, cutting the latency from 350 microseconds to 37 microseconds. The decision eliminates the need for using coiled optical fiber, which originally helped prevent information leaks that could affect trading. The update aims to enhance the efficiency and competitiveness of trading without giving IEX Services LLC (IEXS) or any other member an unfair advantage.
Simple Explanation
The SEC said it's okay for a trading group called IEX to make their messages super fast, like making a toy car go from slow to really fast, so everyone can trade quickly and fairly. They promise it won't give anyone special powers, just make the game fairer for all players.