(Bloomberg) -- IEX should have a clear path to winning SEC approval to be a stock exchange despite claims that its trademark speed bump would violate market rules, according to a top U.S. financial regulator.

IEX’s proposal to briefly pause incoming orders is probably consistent with rules that seek to ensure a fair and competitive trading environment, FINRA CEO Rick Ketchum said this week. Regulations “should be sufficiently flexible” to accommodate IEX’s proposal as long as the delay is fully disclosed and found to benefit investors, he added.

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