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IEX Announces: Extended Promotional Pricing for IEX Displayed Shares

IEX Trading Alert #2015 - 011

Please Route To: Business, Trading, Trade Support, and Technology

What you need to know:

  • IEX announces displayed shares will continue to trade for FREE for both the resting and the taking Subscriber (i.e. both sides) until Wednesday, September 30, 2015.

What is the promotion?

IEX will extend the current promotional pricing period until Wednesday, September 30, 2015: execution fees will remain at 0 mils/share for both sides of a trade involving displayed shares executed on the IEX Order Book.

The promotion was previously scheduled to end 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 July 1, 2015 in order to take advantage of the special pricing.

Firms approved as Subscribers on or after July 1, 2015 will pay the standard rate for their side of any trade of displayed interest, which is 9 mils/share for shares priced $1.00 and higher, or 0.30% of notional value for shares priced below $1.00.

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.

Effective June 1, 2015 and during the promotional pricing period, on a monthly basis, Subscribers who remove liquidity with displayable interest against non-displayed orders, which would have incurred the standard fee, are eligible for the pricing promotion on such executions; provided that at least 90% of their aggregate executions of displayable orders added liquidity during such month.

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% of notional value 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 per share.

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 July 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 June 1, 2015.

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) was 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?

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.