IEX continuously conducts data-driven research and analysis, both examining the execution quality on the Exchange and developing new solutions to drive high-quality trading and level the playing field for investors and companies.

Gone in Sixty Seconds: The Cost of Trading in Long Queues

by Elaine Wah and Stan Feldman

We analyze Daily TAQ data to estimate the costs of trading near or at the end of a long queue. By using aggregate quoted size at trade time as a proxy for queue priority, we find that trading in long lines on maker-taker exchanges may impose significant costs on investors.

Read now

Incentivizing Trading Behavior Through Market Design

by Daniel Aisen

This paper provides an overview of the broad range of trading practices by various participants in the U.S. equity market. It explores the benefit and harm to the overall market of various types of behaviors and discusses specific ways in which IEX has attempted to promote productive trading strategies and discourage harmful practices through thoughtful pricing, system architecture, and market design.

Read now

A Comparison of Execution Quality across U.S. Stock Exchanges

by Elaine Wah, Stan Feldman, Francis Chung, Allison Bishop, and Daniel Aisen

Uses a publicly-available dataset to examine market quality along four dimensions: liquidity, execution costs, price discovery, and market stability. Observations include a consistent trend in venue stratification by fee structures, suggesting that access fees and rebates perpetuate economic incentives misaligned with the tenets of best execution, and may promote activity detrimental to market quality.

Read now

The Evolution of the Crumbling Quote Signal

by Allison Bishop

Examines the origins and ongoing evolution of IEX’s crumbling quote signal and provides analyses of its performance.

Read now

Policy insights

IEX offers a simplified and transparent market designed to eliminate conflicts currently present in the equity markets.

Learn more