IEX Breaks Silence on Modern Markets Initiative Debate Challenge

With apologies to Michael Buffer, “let’s get ready to rumble?”

It’s a battle that has raged since the release of the Michael Lewis tome “Flash Boys” hit last year and its multiple allegations that the U.S. equity market was rigged, high-frequency traders were to blame, exchanges were complacent at best and that private trading venue IEX, led by Brad Katsuyama and company were the answer to the problems of modern equity market structure.

If this were a wrestling match, it would most certainly be a tag team – in one corner Michael Lewis and IEX’s Brad Katsuyama – and in the other market forum and research firm Tabb Group and Modern Market Initiative, the first public advocacy group for high-frequency and other professional traders.

It could be dubbed the “Rumble in the Urban Jungle” – if only Brad Katsuyama would publicly respond to an open offer from MMI chief executive Bill Harts to debate all things high-frequency and market structure. Larry Tabb, like Donald Trump or Don KIng, has offered his services as host forum for the event and moderator.

Michael Lewis issued this debate challenge to MMI’s Harts on a recent edition of “HuffPost Live,” where he was reminiscing on the one year anniversary of the release of “Flash Boys.”

MMI has counter-proposed that TABB’s Larry Tabb serve as a moderator for such a debate/discussion at the upcoming Tabb Forum Conference titled “Equities 2015: A New Vision Forward” to be held on May 21 at the New York Hilton.

“I appreciate Michael Lewis’ suggestion for me to engage in a substantive dialogue with IEX CEO Brad Katsuyama,” said Harts in public statement.“I am disappointed that Mr. Lewis has turned down my offer to have such a discussion with him personally, but if Mr. Katsuyama is his surrogate, so be it.”

There had been no official statement from Lewis or Katsuyama as to whether anyone from IEX will debate or engage in public dialogue some of issues raised in “Flash Boys.” So far, this war of words has just been interesting, and at times, amusing, banter and baiting on Twitter.

Up until now.

IEX did respond to a request for comment when reached by Traders.

“IEX has previously articulated, defended and debated our position multiple times in various forums, including under oath, and our position remains unchanged,” said Gerald Lam, a spokesman for IEX.

It can also be noted that IEX has publicly spoken about where its stands already in official records. The ATS, which is planning to become an exchange, has provided sworn testimony to theU.S. Senate Permanent Subcommitte on Investigations of the Committee on Homeland Security and Governmental Affairs “Conflicts of Interest, Investor Loss of Confidence, and High Speed Trading in U.S. Stock Markets” panel in June of 2014 and to the U.K.House of Lords, The Select Committee on Economic Affairs Inquiry into High-Frequency Trading meeting in July 2014.

And of course, no market participants can forget the now famous live CNBC debate between Katsuyama and former BATS Trading presidentBill O’Brien in April 2014. Katsuyama also spoke on Bloomberg TV live with Tradeworx former chieftainManoj Narang that same month.

IEX is also slated to be present at the upcomingSEC Equity Market Structure Advisory Committee which has publicly not been given a date and theSIFMA Equity Market Structure Conference, which occurs inthe same month as the aforementioned Tabb conference.

Traders did not speak directly with Brad Katsuyama.

However, that might not be enough for MMI or anyone intersted in hearing directly from Katsuyama at the moment.Harts and MMI said they will continue to await to hear directly from Lewis and/or Katsuyama.

“We will keep an open chair for Mr. Lewis if he changes his mind,” Harts said in his release.

MMI was organized in 2013 by leading quantitative trading firms to engage and educate public audiences about the value modern market professionals provide to today’s electronic marketplace. It current members are Global Trading Systems (GTS), Hudson River Trading (HRT), Quantlab Financial and Tower Research Capital.

“I welcome the opportunity to have a constructive dialogue with Mr. Katsuyama on market structure and to address ways in which we can improve the market environment for retail investors – who Barron’s recently said have never had it better in terms of receiving Wall Street’s best prices on their stock orders,” Harts added.