Free Site Registration

FLASHBACK FRIDAY: IEX'S Katsuyama Pegs Exchange Launch Date in Q1 2016

Flashback Friday sponsored by Instinet

Traders Magazine Online News, November 30, 2018

John D'Antona Jr.

A lot can happen in just two years. Just ask anyone at The Investors Exchange, more commonly known as IEX – the newest and perhaps most outspoken public stock exchange – the times are changing and so is the exchange model. Birthed from a buy-side focused ATS, the exchange has risen from dark pool to trading exchange to now listings exchange.

Let’s recall its history:

  1. OCTOBER 2013 - IEX launches as an off-exchange marketplace (ATS)
  2. MARCH 2014 - Flash Boys by Michael Lewis published, featuring IEX’s founding story
  3. SEPTEMBER 2014 - IEX Group raises $75 million funding round to drive growth
  4. NOVEMBER 2014 - Launch of the IEX Signal, a proprietary model used to protect orders on IEX
  5. AUGUST 2015 - IEX files to become a national stock exchange
  6. JUNE 2016 - IEX approved as a national stock exchange
  7. SEPTEMBER 2016 - IEX launches as a national stock exchange
  8. FEBRUARY 2017 - IEX launches stock market data API
  9. MAY  2018 – Public pensions and institutional investors band together to voice support for the SEC Transaction Fee Pilot, joining IEX, the only exchange to support the pilot.
  10. JUNE 2018 – SEC economist finds that the IEX speed bump helps protect investors. 
  11. OCTOBER 2018 - IEX lists its first public company, Interactive Brokers

The list is impressive given the exchange’s short life and some of the hurdles it has had to clear. Starting with the vision of creating a more fair marketplace and turning the industry on its ear wasn’t quite what founding fathers Brad Katsuyama, Ronan Ryan, John Schwall, and Rob Park set out to do. Their credo, “to build fairer markets, whether that is through developing innovative technology designed to protect investors on IEX or identifying new areas where our technology and philosophy can contribute to a fairer marketplace,” still remains true to this day.

Starting from zero, IEX’ market share now stands at 2.867% for November (through 11/28); 2.542% in October; and has a single-day market share record on November 1 at 3.079%.

And this is just the beginning, IEX says. There is more to come, IEX says.

To that end, the exchange has made some key hires to look into the future starting with Boris Ilyevsky. Brought on in July, his mission is to evaluate a range of segments where IEX’s technology and philosophy could contribute to the development of fairer markets for investors and brokers. 

“Boris is an important strategic hire for us at IEX,” said Ronan Ryan, co-founder and President of IEX. “He brings invaluable expertise from a broad range of businesses, and his dedicated focus on exploring and critically analyzing new opportunities will open up new growth areas for IEX while allowing the executive team to maintain focus.”

And let’s not forget IEX has made the jump into the lucrative listings business. In October, just three years after filing to become a public stock exchange Interactive Brokers Group, Inc. (NASDAQ GS: IBKR), an automated global electronic broker, was the first company to list its stock on IEX. Interactive Brokers' common stock, which was listed on the Nasdaq Stock Market, changed to the new bourse. And it is just the beginning.

For more information on related topics, visit the following channels:

Comments (0)

Add Your Comments:

You must be registered to post a comment.

Not Registered? Click here to register.

Already registered? Log in here.

Please note you must now log in with your email address and password.