Direct Edge Seeks Approval For 'Hide Not Slide' And Queue Jumping Order Types

The SEC on Friday disclosed a document sent by Direct Edge that seeks order-type approval.

The filing was released days before the New York Post reported that the SEC and the New York Attorney General requested BATS CEO and Direct Founder William O'Brien to step down. The NY Post stated:
"Bill O’Brien, the ex-president of BATS, left his job last week after Schneiderman’s office and the SEC pressured him to step down following a televised fight with Katsuyama."

The exchange, which merged with BATS Global Markets in August 2013, has tried to explain how it operates to the general public, even asking for some forgiveness in light of its "good faith effort."

In a heated CNBC debate with IEX CEO and Co-Founder Brad Katsuyama, O'Brien said his exchange uses the Direct Feeds to match orders in its matching engine, something the New York Attorney General pressured BATS to correct to state the truth -- that Direct Edge uses the slower Securities Information Processor (SIP) to match orders in it's matching engine.

Benzinga is reviewing the 114-page disclosure and will release more information in the coming days.