Revised Launch Date, and Promotional Pricing for IEX Displayed Shares
IEX Trading Alert #2015 - 005
Please Route To: Business, Trading, Trade Support and Technology
What you need to know:
- IEX announces displayed shares trade for FREE for both the resting and the taking Subscriber (i.e. both sides) effective April 1, 2015 through June 30, 2015.
- IEX revises the launch date for its Displayed Order Book and TOPS top-of-book feed to Wednesday, April 1, from Friday, February 27.
- IEX updates its FIX Specification to expand Trade Liquidity Indicator (FIX tag 9730) with new values to indicate whether executions involved displayed liquidity.
When will IEX's Displayed Order Book go live?
IEX is revising its timing for Displayed Order Book functionality to Wednesday, April 1. The previously communicated date was Friday, February 27.
IEX is making this revision to give participants at least thirty (30) day's advance notice of any changes in the fee schedule.
IEX currently accepts displayed orders for test symbols. IEX will conduct an additional Saturday test opportunity on March 14; refer to IEX's website for the previously announced details on testing opportunities.
What is the promotion?
Effective Wednesday, April 1, 2015, IEX's execution fee will be 0 mils/share for both sides of a trade for displayed shares executed on the IEX Order Book.
The promotion is currently scheduled to run through the close of trading on Tuesday, June 30, 2015. IEX will use commercially reasonable efforts to provide at least thirty (30) days’ advance notice to Subscribers of any changes to its Fee Schedule, delivered via email and posted to IEX’s website.
Who is eligible for promotional pricing for trading displayed interest?
Firms must be approved Subscribers before April 1, 2015 in order to take advantage of the special pricing.
Firms approved as Subscribers on or after April 1, 2015 will pay the standard rate for their side of any trade of displayed interest.
What trades qualify for promotional pricing?
Trades of booked displayable shares are charged a fee of 0 mils/share for both the adder and remover of those displayable shares during the promotional pricing period.
What trades do not qualify for promotional pricing?
Trades of non-displayed shares, including reserve portions of reserve orders, are subject to the standard rate of 9 mils/share for shares priced $1.00 and higher, or 0.30% notional for shares priced below $1.00.
Trades of shares at away trading venues via the IEX Router are subject to the standard rate of the away venue price plus $0.0001.
Broker Internalized shares continue to be Free for both displayed and non-displayed shares.
What do I need to do?
Non-Subscribers who wish to take advantage of the promotional pricing must be approved Subscribers of IEX by April 1, 2015. IEX commits to completing the application review process within 30 days of receiving a complete Subscriber Application. IEX encourages applicants to submit a complete application by March 1, 2015.
TOPS is currently available in the Production Environment for all symbols (non-test symbols will all have a zero quote until April 1). Market participants who wish to consume TOPS should complete, execute, and submit an IEX Data Agreement.
How can I determine whether executions involved displayed liquidity?
Trade Liquidity Indicator" (FIX tag 9730) can be used by Subscribers to determine if an execution at IEX involved displayed or non-displayed liquidity. This tag is generally used in conjunction with "LastMkt" (FIX tag 30) to help calculate trading fees.
Effective April 1, 2015, Trade Liquidity Indicator (FIX tag 9730) will be expanded to support the following values when an order is executed at IEX:
- S = a self-matched trade which did not involve displayed liquidity
- SL = a self-matched trade which did involve displayed liquidity
- I = a trade on IEX which neither self-matched nor involved displayed liquidity
- L = a trade on IEX which did involve displayed liquidity but did not self-match
IEX conventions for routable orders will remain unchanged. If a routable order is submitted to IEX and ultimately executed at an external destination, IEX will pass back the Trade Liquidity Indicator (FIX tag 9730) defined by the executing venue to the Subscriber.
For reference, the Last Liquidity Indicator (FIX tag 851) can be used to determine whether the trade in question added (value 1) or removed (values 2 or 9) liquidity on IEX.
How do I submit displayed orders?
Subscribers can submit fully displayed orders by sending orders with "MaxFloor" (FIX tag 111) omitted, or defining MaxFloor equal to Order Quantity (FIX tag 38). Subscribers can submit reserve (partially displayed) orders by defining MaxFloor with a value greater than or equal to a single round lot. IEX will not display odd lots. Please see the IEX FIX Specification for additional details.
Where can I learn more?
- See prior Trading Alerts regarding Displayed Orders and TOPS:
- View the IEX Subscriber Manual.
- View the IEX TOPS Specification.
- View the IEX Data Agreement.
- View the IEX FIX Specification.
- Contact IEX Sales at 646.568.2345 or subscriber@iextrading.com.
- Contact IEX Market Operations at 646.568.2330 or marketops@iextrading.com.
- Become an IEX Subscriber.
- IEX Frequently Asked Questions.
About IEX
Dedicated to institutionalizing fairness in the markets, IEX provides a more balanced marketplace via simplified market structure design and cutting-edge technology. IEX operates a fair-access platform accessible by any qualified broker dealer. IEX is driven by a team of cross-industry experts with backgrounds spanning market venues, electronic trading, and broker-dealers. IEX is the first equity trading venue seeded exclusively by a consortium of buy-side investors, including mutual funds, hedge funds, and family offices. Learn more at: iextrading.com.