![Brad Katsuyama - What Happens When You Hit “Buy” - [Invest Like the Best, EP.61]](https://megaphone.imgix.net/podcasts/1803c224-ccce-11ed-87bf-33520b2dc772/image/Var_2.png?ixlib=rails-4.3.1&max-w=3000&max-h=3000&fit=crop&auto=format,compress)
Invest Like the Best with Patrick O'Shaughnessy
Brad Katsuyama - What Happens When You Hit “Buy” - [Invest Like the Best, EP.61]
Conversations with the best investors and business leaders in the world. We explore their ideas, methods, and stories to help you better invest your time and money. Hear stock market and boardroom insights you can't find anywhere else. If you're a professional investor, CEO, entrepreneur, or business strategist, this is for you. Explore all our episodes and learn more at https://www.colossus.com
Show Notes
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My guest this week is Brad Katsuyama, the founder of the IEX exchange and protagonist of Michael Lewis’s famous book Flash Boys, which chronicled the role of high frequency trading in markets.
This conversation was yet another reminder of how complicated markets can be, and that very few participants know all aspects of the process well. Brad and I get deep into the history behind his company, and the ways in which markets and exchanges have evolved, better or worse.
One of my favorite parts of this conversation was our exploration of entrepreneurship. Brad’s whole story is one that entrepreneurs will appreciate, and is full of lessons for those aspiring to start their own business.
Please enjoy my conversation with Brad Katsuyama
For more episodes go to InvestorFieldGuide.com/podcast.
To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier.
Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub.
Follow Patrick on Twitter at @patrick_oshag
Books Referenced
Flash Boys: A Wall Street Revolt
Show Notes
– (First Question) Brad’s original discovery of a latency problem in trading stocks
– how the business model of the NASDAQ and exchanges and how it may surprise people
– The edge that exchanges are now monetizing
– How Brad went from finding a solution to his current firm
– Types of high frequency traders that there are
– The formation of IEX
– Funding IEX
– What happens to the initial funding
– Describe what IEX is as it was sold to early buy side investors
– Explaining the concept of a speedbump
– Pitching companies so they will be listed on their index
– Explains maker-taker fees
– The sources of revenue for IEX vs traditional exchanges
– Most memorable meeting Brad has had in establishing IEX
– How did he do this with young kids?
– Has the pool of potential profits that high-frequency trading firms can earn gone down
– What has Brad most excited about the future in terms of helping the buyside
– What was it like to see Brad’s venture get turned into a best-selling book. (Flash Boys: A Wall Street Revolt)
– Biggest thing that Brad has learned
– What would Brad do if he couldn’t work in the investing world.
Kindest thing anyone has done for Brad
Learn More
For more episodes go to InvestorFieldGuide.com/podcast.
Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub
Follow Patrick on twitter at @patrick_oshag
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