Brad Katsuyama on the trouble with high-frequency trading and building a better stock exchange

Brad Katsuyama is the central character in Michael Lewis' book "Flash Boys", about the predatory nature of high-frequency trading on the stock market. Brad thinks the practice immoral and sets out to fix the situation. (Reuters/Carlo Allegri)


The new hero of Wall St., Brad Katsuyama weighs in on Fair Trading, his own moral obligations and Wall Street's need to repair its relationship with society.

The floor of the New York Stock Exchange grew noticeably quieter following that moment. For the next 20 minutes, the two men went toe-to-toe, live on CNBC, on whether the markets are rigged.

If you heard our interview with Michael Lewis last week, you know that Brad Katsuyama is the central character -- hero, even -- of his new book about how the stock markets have been altered by high-frequency trading. Bill O'Brien runs BATS Global Markets, one of the stock exchanges accused of facilitating high-frequency trading. Mr. O'Brien is only one of the Wall Street insiders upset by the accusations. But by the end of the debate, Mr Katsuyama had supporters on the trading floor.

The solution Brad Katsuyama is talking about is something he built himself. After he discovered the effect high-frequency trading had on the markets, he started his own trading exchange. Brad Katsuyama is a Canadian and a former trader with RBC.

Brad Katsuyama is now the CEO of the IEX Group. He joined us from from New York City as part of our Project Money.

If you missed hearing Michael Lewis on The Current last week, you can still hear that interview. His book "Flash Boys" is what got so many people talking about Brad Katsuyama.

What do you think? Is Brad Katsuyama a Wall St. hero? How can Wall St. repair its relationship with the public?

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This segment was produced by The Current's Gord Westmacott.

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