IEX Group, which was founded in March of last year, raised $8.4 million in December and $1.5 million earlier in the year, according to filings with the Securities and Exchange Commission. The proceeds came from the issuance of convertible preferred stock.
IEX was founded by a group of electronic trading executives formerly with RBC Capital Markets with a plan to build an electronic block trading system to be owned and used exclusively by money managers. The concept of a buyside-only trading venue is not new—Liquidnet has run an institutional equities trading network for years—but the idea of buyside ownership is new. Liquidnet is a privately owned broker-dealer.
Behind the move are concerns by money managers that existing venues—exchanges and alternative trading systems—are chock full of high frequency traders bent on gaming their large orders. The IEX initiative is a welcome addition to the trading landscape, one head trader at a large money management firm told Traders.
IEX operates from 7 World Trade Center. Running the firm are Brad Katsuyama, president and chief executive; Ronan Ryan, chief strategy officer; John Schwall, chief operating officer; and Rob Park, chief technology officer. At RBC, Katsuyama was global head of electronic sales and trading at RBC; Ryan was head of electronic trading strategy; Schwall was head of global product management; and Park was head of global algorithmic trading.
The firm is currently hiring technology and sales staff. At least one new recruit is from Liquidnet, Traders has learned.
IEX declined to comment for this article.
