Extended Promotional Pricing for IEX Displayed Shares
IEX Trading Alert #2016 - 026
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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 Thursday, September 01, 2016.
What is changing?
IEX will extend the current promotional pricing period until Thursday, September 1: 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 Thursday, July 29, 2016. This extension puts the promotion in effect through the last planned day of IEX ATS operation, which is currently September 1.
IEX plans to roll symbols over to the IEX exchange alphabetically during a two week period from August 19 - September 2; meaning all symbols will trade on the IEX exchange on September 2, effectively retiring the IEX ATS on September 1. Our timeline can be found here and any changes to our timeline will be delivered via email and posted to IEX's website.
With respect to exchange pricing for the period after September 2, 2016, IEX plans to distribute a subsequent Trading Alert to Subscribers, to be delivered via email and posted to IEX's website.
Who is eligible for promotional pricing for trading displayed interest?
Firms must be approved Subscribers in order to take advantage of the promotional pricing.
What trades qualify for promotional pricing?
Trades of shares displayed on the IEX Book are charged a fee of 0 mils/share for both the adder and remover of those displayed shares during the promotional pricing period.
Effective June 1, 2015 (previously announced in Trading Alert #2015-011) and during the promotional pricing period, on a monthly basis, Subscribers who execute 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.
Broker internalized shares continue to be free for both displayed and non-displayed shares.
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 / Member.
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.