IEX
 |
|
| Type | |
|---|---|
| Location |
New York, New York (office), Weehawken, New Jersey (matching engine), United States |
| Founded | 2012 |
| Owner | IEX Group, Inc. |
| Key people |
Brad Katsuyama (CEO) Ronan Ryan (President) John Ramsey |
| Currency | USD |
| Volume | 126 million shares/day (March 2016) |
| Website | iextrading |
IEX (also known as the Investors Exchange) is a stock exchange based in the United States. Started by Brad Katsuyama, it opened for trading on October 25, 2013. The company’s offices are located at 4 World Trade Center in New York City. The matching engine is located across the Hudson River in Weehawken, New Jersey, and the initial point of presence is located in a data center in Secaucus, New Jersey. IEX's main innovation is a 38-mile coil of optical fiber placed in front of its trading engine. This 350 microsecond delay adds a round-trip delay of 0.0007 seconds and is designed to negate the certain speed advantages utilized by some high-frequency traders. The exchange's market session runs from 9:30 am to 4:00 pm Eastern Time.
The SEC approved the IEX to be an official exchange on June 17, 2016.
IEX was created in response to questionable trading practices that had become widely used across traditional public Wall Street exchanges as well as dark pools and other alternative trading systems. The IEX exchange aims to attract investors by promising to "play fair" by operating in a transparent and straightforward manner, while also helping to level the playing field for traders. Strategies to achieve those goals include:
These strategies are intended to ensure the trustworthiness of the exchange. A few dark pools are owned by trading companies that pay for certain types of orders to allow them to fill orders within the pool, rather than routing orders to public exchanges. IEX offers no rebates for orders, and only charges a flat fee of $0.0009 per share on trades executed within the dark pool (or 0.30% with shares worth less than $1.00). Trades forwarded to other trading venues are charged a lower rate.
IEX has five order types: market, limit, primary peg (pegged to national best bid/offer), midpoint peg and patent-pending discretionary peg. IEX discretionary peg is a primary peg that may execute at up to midpoint price when the quote is stable. A few optional parameters can be attached to the orders, leaving IEX with many fewer order types than most other exchanges.
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