Look, all this guy is saying is that he is paying someone else to take on the risk of executing his large orders. Block crossing networks and sell-side traders have existed for a long time. Hell, that's what Brad (IEX CEO and Flash Boys protagonist) did prior to starting IEX. This guy is saying: rather than use an order execution algo to get my trade done, I'm just doing a cross upstairs with some sell-side guy, paying them a known amount, and letting them deal w/ how to handle it on their side.

They aren't outsmarting anyone. They're simply transferring execution risk, and they pay handsomely for it, trust me.