Phantom Liquidity and the Monopoly on Data Feeds

Published on
July 5th, 2019
46 minutes

Phantom Liquidity and the Monopoly on Data Feeds

The Interview ·
Featuring Ronan Ryan

Published on: July 5th, 2019 • Duration: 46 minutes

Ronan Ryan, President of IEX, delivers a highly candid snapshot detailing the fragmentation of the current equity market structure and the perverse incentives of the other stock exchanges. Ronan reveals why the stock exchanges' pricing on data feeds has led to a market where much of the equity market liquidity may be phantom. Filmed on June 10, 2019 in New York, NY.



  • MT
    Mike T.
    1 October 2019 @ 10:25
    RIP IEX, it was a flawed concept from the start, the idea of slowing order flow down, does not benefit consumers & retail traders
  • MT
    Mike T.
    30 September 2019 @ 13:11
  • MT
    Mike T.
    20 July 2019 @ 15:12
    posting this for the archives in the hope that it'll be seen and helpful to others. At the link below video of Sheldon Nateberg speaking in Chicago July 13th 2019, of how Options Market Makers actually work.
  • MT
    Mike T.
    5 July 2019 @ 08:44
    I would love to see a debate between IEX and say someone like Citadel or Jump. The introduction of the Citadels and others HFC market makers competing for brokerage order flow is to be celebrated and has completely changed the game, particulary for Retail Traders e.g. costs down, transaction times down, liquidity up.
    • MT
      Mike T.
      5 July 2019 @ 09:08
      typo above, change HFC to HFT
    • SM
      Sean M.
      7 July 2019 @ 13:51
      Look up Justin Schack on Real Vision, July 02, 2019, he gives some counters.
    • TM
      Tom M.
      11 July 2019 @ 00:28
      HFT - no skin in the game, doing everything to transfer the risk onto others while getting all the benefits. No wonder real liquidity has fallen.
    • MT
      Mike T.
      13 July 2019 @ 17:52
      Tom M. if you do a search on HFT you will find there is no shortage of scare stories about HFT. Now my comments focus purely on the Market Makers stress market makers (e.g. Citadel) that use HFT technologies to 'make a market'. These guys are not out to screw the other side, they purely make their money from the scale of transacting billions of orders every day think of it as they sell you something for $1 that they believe is worth $1.000001. As orders come in, in a nano second they decide if they want it, where the liqudity is and if they take your order they immediately set up an 'opposite' order so as to keep their overall positions 'delta neutral' with i/c client orders i.e. they are not taking directional risk themselves. If you believe that such market making operations are negative, I like to say very quietly, & politely you are ill-informed,
  • TM
    Tom M.
    11 July 2019 @ 00:32
    Thank You for calling out "bullshit liquidity". I wish IEX all the luck.
  • JH
    Joel H.
    10 July 2019 @ 07:33
    Really interesting, great video
  • MS
    Matt S.
    5 July 2019 @ 19:22
    What is a "mil" ?
    • TN
      Tyler N. | Real Vision
      6 July 2019 @ 00:18
      A mill is a hundredth if a penny. So when he says 37 mills that’s .0037 cents per share.
    • JF
      John F.
      7 July 2019 @ 03:35
      Glad Matt asked this question. Tyler, don't you mean that 37 mills = 0.37 cents? Or another way to express it is that 37 mills = 0.0037 dollars.
    • TN
      Tyler N. | Real Vision
      8 July 2019 @ 21:42
      @John F thanks for the correction. Yes- apologies I meant .0037 dollars or .37 cents!
  • IO
    Igor O.
    8 July 2019 @ 18:26
    That was cool to see actual spools of cable sitting there, after reading Flash Boys.
  • PG
    Philippe G.
    7 July 2019 @ 20:25
    Great story. Learned quite a bit from Flash Boys and this interview. Thanks!
  • PW
    Phil W.
    7 July 2019 @ 14:40
    In the interview a book was mentioned "Dark Pools" by: Scott Paterson. I can't find it, any links to point me in the right direction...............................tia
    • ML
      M L.
      7 July 2019 @ 17:02
  • JF
    Joseph F.
    7 July 2019 @ 02:14
  • MC
    Michael C.
    7 July 2019 @ 00:53
    Maybe delving into this is far too technical and esoteric, but the whole video seemed like it was an iex promotion video. Here are alternative points of view from the interwebs : Would be really cool if RV could get Matt Hurd on, he'd sure have interesting market micro-structure related stories
  • AW
    Austin W.
    6 July 2019 @ 04:46
    Loved it, want more!
  • PW
    Phil W.
    5 July 2019 @ 21:49
    As a lay person, Brilliant!!!!!!
  • LP
    Lionel P.
    5 July 2019 @ 20:56
    Great interview ! Very interesting
  • MS
    Matt S.
    5 July 2019 @ 19:54
    That was really good - I remember IEX from the Flash Boys book now. Must dig out Dark Pools - never got around to reading that one. Hey Raoul - how about a history series, that looks at things like the development of exchanges over the years? Would be great.
  • KW
    Ken W.
    5 July 2019 @ 19:50
    Great video until RV decided to spam an ad at the end
  • MS
    Matt S.
    5 July 2019 @ 19:03
    I say do away with cables - have raw blue laser light beams sending the data directly through a vacuum to a dedicated receiver (I actually have no idea what I'm talking about but I think I'm onto something here... heh)
  • HK
    H K.
    5 July 2019 @ 17:53
    what a high quality guest. excellent to hear the clear and detailed thoughts on an important but underappreciated part of our markets.
  • lb
    l b.
    5 July 2019 @ 11:04
    So informative! Any chance RVTV would consider a dedicated Market Structure show or playlist?
    • M.
      Milton .. | Founder
      5 July 2019 @ 17:31
      Good call IB, I will put together the details.
  • SG
    Sven G.
    5 July 2019 @ 17:20
    i read both books Ronan mentioned, great to hear more/updated detail.... THANKS
  • AO
    Alex O.
    5 July 2019 @ 15:16
    Superb work IEX and @Realvision!
  • vm
    vaz m.
    5 July 2019 @ 12:37
    Thank you Ronan for being the only honest exchange around with no bullshits.
  • JQ
    Joseph Q.
    5 July 2019 @ 12:29
    Excellent Interview!!
  • PB
    Pieter B.
    5 July 2019 @ 08:32
    Absolutely brilliant! Thanks a lot!