IEX Grows Displayed Market Share

Equities exchange IEX has tripled its displayed market share since June 2024 after introducing new pricing tiers but said it has maintained market quality. Bryan Harkins, president of IEX Group, said in a story in Markets Media news: “We are particularly proud of our displayed market share as market quality has not been sacrificed for growth. On the contrary, our displayed growth has improved the performance of our dark venue.”  IEX powered its order types with a machine learning-based mathematical formula, the Signal, also known as the crumbling quote indicator. The Signal predicts which way the market will move in order to protect customers from trading at a price that will imminently become stale. The Signal is enabled by the IEX Speed Bump, which gives IEX Exchange a time buffer in which to determine if a price is unstable before trades are executed. In addition, the SEC approved IEX’s Discretionary Limit, or D-Limit, order type in 2020. D-Limit protects liquidity providers from potential adverse selection resulting from latency arbitrage trading strategies and was introduced to encourage members to submit more displayed limit orders to the exchange. D-Limit uses the power of the IEX Signal to move an order out of the way if the price is about to become imminently stale i.e. the order avoids being “run over” when the price is unstable. IEX has filed with the US Securities and Exchange Commission to expand outside equities and launch an options exchange. The new venue’s rule book has been published on the SEC website, according to Harkins.