Group Co.
IEX Offers Concessions to Break Into Listings Business
Traders Magazine Online News, September 6, 2017
List now and get five years free.
Five years?
Yep. According to a report in Bloomberg, IEX, acknowledging how hard it will be to compete with both the NYSE and Nasdaq, is waving the listings fees for companies that transfer to its venue.
The announcement came last Friday, as the exchange said that it wants to charge the companies it hosts a flat annual fee of $50,000. But here’s the kicker - the first stock to shift from NYSE or Nasdaq, and anyone who announces their own move within 120 days, will get at least $250,000 in fee credits.
“Based on discussions with companies currently listed on NYSE and Nasdaq, the exchange believes that a meaningful fee credit is necessary to incentivize currently listed companies to transfer their listing to IEX,” the firm said in the Securities and Exchange Commission filing dated last Thursday.
As it stands now, NYSE and Nasdaq are the only two exchanges that list and host every U.S. listed stock. IEX hopes to break this stranglehold.
IEX has an ex-Morgan Stanley managing director, Sara Furber, running its listings effort and hopes to start hosting companies as soon as October.
“IEX’s proposed simple low cost flat-fee structure, combined with the limited fee credit, as well as no fee in the first year of listing, is designed to address the significant competitive challenges,” IEX said.
For more information on related topics, visit the following channels:
Comments (0)