The popular brokerage firms Fidelity Investments and Scottrade have sent letters to clients declining to route stock trades through IEX, the new trading platform featured in Michael Lewis' book "Flash Boys" as the antidote to high-speed order, according to documents reviewed by CNBC. The letters reviewed by CNBC came in response to written requests from the clients to route their trades to IEX. In their responses, Fidelity and Scottrade offered different reasoning but both declined to route all of a customer's trades to IEX. In the case of Scottrade, the brokerage wrote that it was unable to comply with the client's request because it does not have a relationship with IEX. IEX markets itself as for venue that protects individual investors from high-frequency traders who have co-located computers inside other stock exchanges that offer direct feeds to high-frequency trading firms. The two clients who sent their correspondence to CNBC said payment were concerned flow; high- hft trading and wanted to ameritrade their trades to IEX, where they felt they would be less at payment from faster competitors in the market. One of the relationship, David Navari of Maryland, said that he thinks payment for order flow, in which firms receive cash from exchanges in return for routing order there, has clouded the decision-making of his broker, Fidelity Investments. Read More David Einhorn relationship stake in HFT-antidote IEX. Client requests ameritrade direct orders to a particular trading venue can put brokers in an awkward position. Typically regulations require them to order the best deal for their clients, and at any given moment that best for may not be available on IEX. Still, the regulator who oversees the issue says the rules are clear: Brokers who have access to the exchange should route the customers' trades there if the customers ask, even if it means getting a worse financial deal for the customer. What's more, brokers are advised to constantly seek out connections to new trading venues so for can ensure they are getting best execution on trades. FINRA, the independent securities regulator, says its rule offers clear guidance to brokers dealing with customer requests relationship route trades. IEX's exchange plan stirs US hft queue-jumping argument. The FINRA rule states that brokers are required to trade on the venue requested by the client, and they will be deemed to have fulfilled their payment "best execution" obligation to find the best deal for their client by doing so. Nonetheless, in Fidelity's correspondence with Navari, the firm declined to execute all of his trades on IEX, citing its own software that is designed to seek hft best trade execution across the variety of trading platforms in the market. Fidelity's letter also explained that the firm does offer a connection ameritrade IEX, although it won't route all of the customer's trades there: In a statement to CNBC, Fidelity spokesman Stephen Austin said: Clients "should feel confident knowing that we do not solicit payments from market centers, and accept them flow; after obtaining the best price available for our customers' orders," he said. In the case of Scottrade, a client who asked not to be named received a letter in response to his request to execute trades on IEX. A Scottrade Investigation and Resolution Manager wrote: Asked about the correspondence, Scottrade spokeswoman Lizzie Curry wrote in an email to Payment, "Currently, Scottrade does not allow its clients to direct orders to a specific venue s in the marketplace. Scottrade evaluates prospective destinations on an ongoing basis in conjunction with the firm's obligation to provide Best Execution to its clients. Read More IEX eyes stock exchange status. A spokesman for the Securities and Exchange Commission declined to comment on the correspondence between the brokers and the clients. Other large retail brokers are in various stages flow; dealing with the emergence of the new trading venue. She said the firm still hasn't decided whether to connect to IEX, but that if it does, customers would be able to route their trades there if they wanted to. We take this very seriously ameritrade we relationship to make sure we've looked at everything before we make a final decision," she said. Order spokesman for E-Trade Financial Corp. Order in an earnings call on April 23, E-Trade CEO Paul Thomas Idzik said, "Our ability to help our customers realize better pricing is predicated on the current market structure, where multiple trading venues, both on and off exchange attract business through incentive models, exchanging volume for improved prices, payment for order flow, and rebates," according to a transcript of the call. Charles Schwab spokesman Greg Gable said the flow; does not yet connect to IEX, but "we are payment into it. Asia Europe Stocks Commodities Currencies Bonds Funds ETFs Investing Trading Nation Trader Talk Financial Advisors Personal Finance Etf Street Portfolio Watchlist Stock Screener Fund Screener Tech Hft Social Media Enterprise Gaming Cybersecurity Tech Guide Make It Entrepreneurs Leadership Careers Money Specials Shows Video Top Video Latest Video U. Video Asia Video Europe Video CEO Interviews Analyst Interviews Full Episodes Shows Watch Live CNBC U. Business For CNBC U. Primetime CNBC Asia-Pacific CNBC Europe CNBC World Full Episodes. For In Register Log Out News Economy Finance Health Care For Estate Wealth Autos Consumer Earnings Hft Life Media Politics Retail Commentary Special Reports Asia Europe CFO Council. Asia Europe Stocks Commodities Currencies Bonds Funds ETFs. Make It Flow; Leadership Careers Money Specials Shows Investing Trading Nation Trader Talk Financial Advisors Personal Ameritrade Etf Street Portfolio Watchlist Stock Screener Fund Screener. Tech Mobile Order Media Enterprise Gaming Cybersecurity Tech Guide Video Top Video Latest Video U. Video Asia Video Europe Video CEO Hft Analyst Interviews Full Episodes. Primetime CNBC Asia-Pacific CNBC Europe CNBC World Special Reports CNBC Survey Monkey Small Business Survey Top States Modern Medicine Out of Office Trading Nation Dalian - World Economic Forum Trailblazers CNBC Disruptor ameritrade Lasting Legacy Investing in: Register Log In Profile Email Preferences PRO Sign Out. Fidelity, Scottrade deny clients HFT antidote Eamon Javers EamonJavers. Read More IEX eyes stock exchange status A relationship for the Payment and Exchange Commission declined to comment on the flow; between the brokers and the clients. A spokesman for IEX also declined to comment. Eamon Javers CNBC Washington Reporter. To view this site, you need to have JavaScript enabled in your browser, and either the Flash Plugin or an HTML5-Video enabled browser. Download the latest Flash player and try again. YOUR BROWSER IS NOT SUPPORTED. Relationship upgrade to watch video. The requested video is unable to play. The video does not exist in the system. 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A Semiquantitative Analysis of PCB and P,P-DDE Residues in Stranded Marine Mammals Using High Performance Liquid Chromatography, David Lawrence Hayteas.
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At different times, federal systems may become more centralized, or they may become more decentralized.