IEX Announces: Modifications to Minimum Quantity
IEX Trading Alert #2014 - 004
Please Route To: Trading and Trade Support
What you need to know:
- Pending successful regulatory review of IEX’s amendment to Form ATS, be advised of upcoming modifications to IEX Minimum Quantity (MQTY) functionality:
- Tiers will be disabled – any MQTY value can be sent to IEX
- Participation will be disabled – no resting MQTY order will receive a fill amount less than the specified MQTY
- Deployment is targeted to begin Friday, April 11, 2014
- Pending the successful conclusion of the 20 day regulatory notice window, a follow-up Trading Alert will be published with the deployment schedule and launch date.
What's changing?
There are two planned modifications to the Minimum Quantity Order condition:
- Disabling Tiers – any MQTY value will be accepted by IEX.
- Disabling Participation – this functionality will be turned off. Therefore, no MQTY order will receive a fill amount less than the specified MQTY.
- For Resting Orders – the fill must come from a single contra.
- For Active Orders (that test against the IEX book) – composite functionality can fill a MQTY order with multiple fills when the sum of contra-side interest satisfies the Active Order’s MQTY.
Why are these changes being made?
We are making the proposed modifications to eliminate the probability of scenarios where fills were completed at amounts less than their specified MQTY.
The original rationale for implementing Tiers was to increase the probability that MQTY orders of similar size would find a matching contra-party. The original rationale for implementing Participation was to increase the probability of finding fills while allowing investor clients to remain selective about contra-interest.
What do I need to do to adapt to the modified functionality?
No further steps or customizations are needed to continue to leverage MQTY.
Those firms that have constrained the entry of MQTY orders to the previously supported tiers may now remove that restriction.
Where can I learn more?
- Read the full IEX Product Enhancement Proposal #3: The Minimum Quantity Order Condition here
- Contact IEX Market Operations at 646.568.2330 or marketops@iextrading.com.
- Contact IEX Sales at 646.568.2345 or subscriber@iextrading.com.
- Visit the IEX Website iextrading.com.
- IEX Subscriber Manual.
- Become an IEX Subscriber.
- IEX Frequently Asked Questions.
About IEX
Dedicated to institutionalizing fairness in the markets, IEX provides a more balanced marketplace via simplified market structure design and cutting-edge technology. IEX operates a fair-access platform accessible by any qualified broker dealer. IEX is driven by a team of cross-industry experts with backgrounds spanning market venues, electronic trading, and broker-dealers. IEX is the first equity trading venue seeded exclusively by a consortium of buy-side investors, including mutual funds, hedge funds, and family offices. Learn more at: iextrading.com.