IEX Announces: Primary Peg Functionality
IEX Trading Alert #2014 - 011
Please Route To: Trading and Trade Support
What you need to know:
- IEX announces Primary Peg functionality for IEX’s Peg order type, which will allow Subscribers to rest passively on the IEX Book at the near side quote of the NBBO.
- Target date for introduction of Primary Peg functionality is Tuesday, June 10th.
What is Primary Peg?
Primary Peg orders are limit orders, or unpriced orders, that upon entry into the System, rest on the IEX Book at near side of the NBBO (NBB for buy orders, NBO for sell orders), up (down) to the order’s limit price. Primary Peg orders will not execute at a price more aggressive than the NBBO.
Only non-IOC (Day and GTT) are supported as time-in-force (TFF) for the Primary Peg orders.
Why is IEX offering Primary Peg?
To deliver the best possible trading experience, IEX believes our market must grow and evolve with the benefit of input from a broad range of participants. We solicited input for Primary Peg when we distributed Product Enhancement Proposal #4 on May 7th, 2014.
Subscribers have requested pegged order functionality that would allow them to rest passively at the near side quote instead of or before they rest at the midpoint via Midpoint Peg and/or ultimately cross the spread. With Primary Peg, passive liquidity can stay resting at the near side quote without requiring Subscribers to resubmit order instructions to adjust their Limit Price as the NBBO moves over time.
What do I need to do?
Subscribers who wish to submit a Primary Peg order should contact the IEX Market Access Team at subscriber@iextrading.com to coordinate certification of the new order modifier once they have coded to the Primary Peg specification found in the IEX FIX Specification.
Where can I learn more?
- Read the Product Enhancement Proposal soliciting feedback to Primary Peg.
- Contact IEX Sales at 646.568.2345 or subscriber@iextrading.com.
- Contact IEX Market Operations at 646.568.2330 or marketops@iextrading.com.
- Visit the IEX Website iextrading.com.
- Become an IEX Subscriber.
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.