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IEX Announces Competitive, Flat-Fee Pricing for Auctions

Traders Magazine Online News, November 9, 2017

John D'Antona Jr.

IEX, the Investors Exchange, today announced that it will charge a flat 3 cents per 100 shares (i.e., “3 mils per share”) executed in an IEX Auction for companies listed on IEX, including the opening and closing auctions.1

This pricing, developed based on input from investors and brokers, is lower than the typical fees charged by other U.S. stock exchanges and is designed to broaden participation and enhance the price discovery process of an IEX Auction.

IEX’s decision to charge a flat fee reflects the exchange’s commitment to leveling the playing field in stock trading. IEX does not allow some participants to pay less in the auctions based on complex pricing tiers, and does not offer specialty order types, like Imbalance Only orders or D-Quotes, that entail different fees. Like all displayed trading on IEX, displayed orders resting on the continuous book that execute in the opening or closing auctions will trade for free.

“The incumbent exchanges force brokers to pay unreasonably high costs for executing in the auctions, since they effectively hold monopolies on those important windows of trading. We don’t think that is good for the market or the companies whose stocks are being traded,” said IEX President and Co-Founder Ronan Ryan. “A competitive fee is another tool we’re using to aggregate interest from a wide array of brokers and investors, along with a fair and simple auction mechanism.”

IEX plans to conduct its first auction for an IEX-listed security when it lists its first company in early 2018. Testing of IEX’s auction process has been underway since July and is on track. IEX plans to conduct its fifth industry test of listings functionality on Saturday, January 6, 2018. Additional information about IEX Auctions can be found in the IEX Auction Process Specification and on the IEX blog.

1 - Please see [Rule SR-IEX-2017-40] for details. All IEX fees are subject to SEC filing and effectiveness.

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