IEX Readies Advanced Predictive Order Types

IEX President Ronan Ryan said the exchange was continuing to focus on its core strengths- technology and trading, according to a story in Markets Media. Ryan said that the exchange is now looking at predictive analytics as the next frontier – and when coupled with its existing speed bump can further protect client orders from not only getting a stale quote “picked off” but help clients predict a market move and prevent a quote from ever becoming stale. As Ryan explained it, the push into predictive analytics has yielded the Discretionary Peg (“D-Peg”) order type. In IEX, the D-Peg order type emulates HFT strategies and then adjusts the bid or offer automatically. “The D-Peg runs similar to an HFT strategy in that it makes a determination when the market is going to tic,” Ryan said. “Then we can make the prediction and protect the client by keeping them pegged 1 MPV (minimum price variant) away from the bid or offer.” D-Peg seeks to trade at the midpoint during all other times.