This week, the “Masters in Business” radio podcast features Brad Katsuyama of IEX who is probably best known to the public for his role in Michael Lewis’ book Flash Boys.
In our extended podcast, Brad explains the puzzle that HFT was presenting to institutional traders: By 2007, something had changed in the market structure, but no one really knew what it was. He explains how he and his team became detectives, eventually unravelling the impact that was algo-driven High Frequency Trading.
Michael Lewis first started speaking to him on background, in order to learn more about HFT. Eventually, he figured out Katsuyama was the main character in this mystery.
We chat about his appearance on 60 Minutes, and the infamous debate on CNBC with the William “Bill” O’Brien, the CEO of BATS exchange. The NYAG forced BATS to correct O’Brien’s public misstatements; he left the firm a few months later.