How to slow down a stock exchange
High-frequency traders have a few tactics on stock exchanges: but simply put, they gather price information faster than anyone else, sometimes even faster than the markets themselves, and use that to make a tiny profit many, many, many times. There are all sorts of solutions: but it turns out there’s a simpler one that involves physics.
Thanks to Ronan and all the team at IEX – you can find out more about them here: https://iextrading.com/ or on Twitter at https://twitter.com/IEX
I fact-checked Ronan’s claim about the SEC white paper because it seemed a bit too good to be true, but he’s right: see Hu, E. (2018). Intentional Access Delays, Market Quality, and Price Discovery: Evidence from IEX Becoming an Exchange. SSRN Electronic Journal. https://www.sec.gov/files/07feb18_hu_iex_becoming_an_exchange.pdf [PDF]
Edited by Michelle Martin https://www.youtube.com/@OnTheCrux
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@TomScottGo
January 21, 2026 at 10:51 am
Apologies for the patchy video quality in places here: my camera really did not like the lighting inside IEX's offices. And to be clear, this isn't sponsored, I just found out about the cable loops and emailed IEX to ask if I could film with them!
@_layman_
January 21, 2026 at 10:51 am
"Fiber optic cable. High speed internet access."
@brandonlehman7440
January 21, 2026 at 10:51 am
its genuinely sickening to know that money to the rich is just a plaything, something they can just build a computer and invest more into so they can print even more money. the stock market is the devil
@NathanZSolomon
January 21, 2026 at 10:51 am
I have no doubt that one future application of quantum tunneling will be the stock exchange. No more need to pay NYC prices for buildings, taxes, etc. These computer systems could be on the moon or in the ocean and the update from these tunneled particles is instantaneous…faster than light speed.
@YoYoBobbyJoe
January 21, 2026 at 10:51 am
Now switch that to copper.
@schoolofcrypto8505
January 21, 2026 at 10:51 am
🧲🧲🧲🧲🧲🧲🧲🧲🧲🧲😎
@nick_624
January 21, 2026 at 10:51 am
Damn, that's cool AF
@thodorisevangelakos
January 21, 2026 at 10:51 am
I dont understand, why do they slow themselves? Why not trade on another platform?
@EdwardENGLER
January 21, 2026 at 10:51 am
this is so dumb
@motormann2083
January 21, 2026 at 10:51 am
just another example for physics as the best solution for everything
@commercialcritic4676
January 21, 2026 at 10:51 am
Sweet!
@ompathak4392
January 21, 2026 at 10:51 am
If you are adding lag in you system then no HFT would collaborate with you , then how will it help the non-tech traders?
@110jmartin011
January 21, 2026 at 10:51 am
So, you can still get your front runners on the other exchanges?
Why then wouldn't everyone use IEX to trade their stocks then?
I don't understand why IEX exist and the other exchanges are still in use, are there stocks that can only be exchanged thru certain exchanges, like "if you want intel stocks, you gotta use this exchange cause intel aint supported on IEX" or something, i dont get it, like it seems so simple yet at the end I am told there is still 13 different exchanges?
@Not1Edit
January 21, 2026 at 10:51 am
BTW those spools are pure Silver.
@Vyrus_be_like
January 21, 2026 at 10:51 am
can’t they just add a sleep function for 300ms
@liesofgasandpilesofshoes
January 21, 2026 at 10:51 am
maybe shut down the stock market and make them get proper jobs like growing food or fixing engines
@npc73x
January 21, 2026 at 10:51 am
Are they still making profit considering the exchange transaction charges
@SebGreen
January 21, 2026 at 10:51 am
a coil to slow down signals? hahahahahahahaha
@electricityandfire
January 21, 2026 at 10:51 am
Imagine how manny tangles that cable would have it you unspooled it
@nicevyoo
January 21, 2026 at 10:51 am
Great book about this: Flash Boys by Michael Lewis (The Big Short).
@rolexkr
January 21, 2026 at 10:51 am
This is the algorithm ICT talks about.
@theultimatehoomanperson6701
January 21, 2026 at 10:51 am
Ping spoofing IRL
@egooidios5061
January 21, 2026 at 10:51 am
I think it's way more profitable to know where he price will go, before it goes there. Or as the paying goes, nothing travels faster than the speed of light except for bad news. Make shorts on a stock, distribute bad news about it, profit.
@htcsmartphone96
January 21, 2026 at 10:51 am
Bane, cellular-equipped, says hello.
@Benjamin-674
January 21, 2026 at 10:51 am
this should be illegal. It doesnt even affect me but its an unjustified advantage
@XMTRADER0369
January 21, 2026 at 10:51 am
Subscribe channel for more support 😊
@filmyhari9373
January 21, 2026 at 10:51 am
No use of that 0.35 second, humanly. Maybe in algo it’ll probably work
@OneWheelDrive365
January 21, 2026 at 10:51 am
I have worked 11 years with optic fibers. When we test the optic fiber for defects. Like fusion splices or connectors we use a OTDR measuring device. To test de connectors (in and out coupling) we need spools of 1000m begin and on the end. To see the connectors. De box with 3 spools of each 1000m of fiber is as big as a lunch box.
The SC-PC connectors (the blue ones) the used in this video can cause more delay. They have so called square contact surface. They reflect light right back in to the fiber that can cause delay. Therefore the use of SC-APC (the green ones) connectors are standard about 8 years ago here in the Europe. The contact surface have angle of 8° so they don't reflect as much light back in tho the optic fiber. The nuance goes a lot further this is just the basics.
@funy0n583
January 21, 2026 at 10:51 am
Why did they choose to use a very long length of fiber optic instead of just using copper conductor, which would be cheaper and would need less space?
edit: oh probably to not have any interference
@kaptainkaos1202
January 21, 2026 at 10:51 am
I work in radio communications and we do the same thing when balancing antenna arrays that are at different distances. X among of cable equals Y amount of time or distance.
@silencer8706
January 21, 2026 at 10:51 am
no intro or anything, who do you think you are
Comments are closed.