A new US options exchange that delays customer orders in a bid to thwart high-frequency traders exploiting price discrepancies is unfairly discriminatory, Citadel Securities LLC told a federal appeals court, urging it to overturn the SEC’s approval of IEX Group Inc.'s venue.
“This rule discriminated in favor of one sophisticated set of market participants,” Eugene Scalia, a partner at Gibson Dunn representing Citadel and a former Labor secretary, told a panel of judges on the US Court of Appeals for the Eleventh Circuit at oral arguments Tuesday.
“That’s unprecedented under securities laws for an exchange, which is supposed to be ...