Citadel Securities Loses Court Fight Over New IEX Options Venue

Citadel Securitieslost its bid to block IEX Group Inc.from launching a new type of options exchange that intentionally slows orders, after a federal appeals court on Friday rejected the market maker’s challenge.

The ruling by a three-judge panel clears the way for IEX, the exchange operator made famous by Michael Lewis’s Flash Boys, to launch the venue later this year. The court said the Securities and Exchange Commission acted properly in approving the platform, rejecting Citadel Securities’ claim that latency arbitrage — the trading tactic IEX says its delay is meant to blunt — isn’t a real ...