Where is a millisecond worth a million dollars? The New York Stock Exchange.
Learn more about your ad-choices at https://www.iheartpodcastnetwork.comSee omnystudio.com/listener for privacy information.
Explicit content warning
05/14/19 • 53 min
10 Listeners
Against the Rules with Michael Lewis - The Magic Shoebox
Transcript Summary
In the captivating episode titled "The Magic Shoebox," Brad Katsiamma and Ronan Ryan join forces to challenge the rigged and unfair practices of high-frequency trading on Wall Street. Recognizing the disparities faced by ordinary investors, Brad and Ronan develop a strategy to outsmart the high-speed traders, utilizing four signals instead of one. They expose the flaws in the American stock market system, where stock exchanges prioritize profit over fairness. Inspired by their mission, they establish the fair exchange IEX, introducing a speed bump to level the playing field and save investors billions of dollars yearly. Throughout this thought-provoking episode, the podcast Against the Rules explores the notion of wealth and fairness, emphasizing the importance of understanding the intricacies of the market to recognize its inherent flaws. Overall, "The Magic Shoebox" portrays the inspiring journey of Brad and Ronan as they uphold integrity in an industry plagued by unethical behavior and advocate for a fairer stock market system.
Transcript
Pushkin, Sorry to wake you up to do this. No, it's fun, all right. So what do you think the stock market is? That's my son Walker. He's eleven, roughly the same age that I was when my father sat me down for the talk. My father never did actually explain how sex work. I think he thought a person just naturally figure that out. Money was different. Money was something that needed explaining. I think the stock market is from the way I look at it at
The Magic Shoebox Top Questions Answered
How does the stock market work and allow individuals to make money?
The stock market is a system where individuals can invest and make money by buying and selling shares of companies.
What is the main place for trading in the stock market and how has it changed?
The New York Stock Exchange used to be the main place for trading, but now it's mostly done through computers.
How do high-frequency traders gain an advantage in the stock market?
High-frequency traders use technology to gain an advantage by detecting large orders and making trades before others.
Why do traders pay large sums for faster connections and co-location in data centers near stock exchanges?
Traders pay for faster connections and co-location to ensure quicker access to market data and execute trades faster.
Who created a fair stock exchange called IEX and what did they implement?
Ronan Ryan and Brad Katsuyama created IEX, which implemented a speed bump using coiled cable to slow down high-frequency traders.
How much money do investors save per year due to the speed bump implemented by IEX?
Studies show that the speed bump implemented by IEX saves investors between 1 and 12 basis points, amounting to billions of dollars per year.
How long did it take for IEX to get approval to open from the SEC?
It took two years for IEX to get approval from the SEC to open.
Is it legal for children to buy stocks?
It is not illegal for kids to buy stocks, but their parents have to do it for them.
How do stockbrokers get paid and who takes a portion of profits?
Stockbrokers get paid by stock exchanges for sending orders, creating a system where everyone involved takes a portion of profits.
What issues did Brad Katsiyama discover with his trading computer and how did he address them?
Brad Katsuyama noticed problems with his trading computer when he couldn't buy the full amount of stock he wanted due to high-speed traders front-running his trades. He formed a team with Ronan Ryan to find a solution, successfully eliminating the front-running problem.
Show more Questions
Show more Questions
Generate a badge
Get a badge for your website that links back to this episode
<a href="https://goodpods.com/podcasts/against-the-rules-with-michael-lewis-11531/the-magic-shoebox-10977078"> <img src="https://storage.googleapis.com/goodpods-images-bucket/badges/generic-badge-1.svg" alt="listen to the magic shoebox on goodpods" style="width: 225px" /> </a>
Copy