IEX Announces: Updates to Minimum Quantity Functionality
IEX Trading Alert #2014 - 013
Please Route To: Trading, Trade Support, and Technology
What you need to know:
- IEX announces a new order condition for Minimum Quantity: Minimum Execution Size (MinExec).
- IEX announces support for amendments to Minimum Quantity (MQTY).
- Target launch date for both MinExec and MQTY Amendments: Friday, June 20th.
What is Minimum Execution Size?
Minimum Execution Size (MinExec) is an alternate method to Composite (current methodology described in Trading Alert #2014-005) for Minimum Quantity orders when taking liquidity.
How MinExec differs from the Composite method when handling MQTY orders:
- MinExec orders will only execute against orders which individually satisfy the minimum quantity requirement
- MinExec orders are canceled back to the Subscriber when their remaining shares fall below the minimum quantity
There is only one method for filling resting Minimum Quantity orders: Minimum Fill. Detailed descriptions of the active and resting behavior for both Composite and MinExec orders may be found on the following page: http://www.iextrading.com/services/#orderparams
In summary, IEX will satisfy the Minimum Quantity (MQTY) condition of orders by the following methods (Following launch of MinExec):
- Method #1: Composite (when taking) and Minimum Fill (when resting)
- Method #2: Minimum Execution Size (when taking) and Minimum Fill (when resting)
What do I need to do to submit a MinExec order?
Subscribers are currently defaulted to the Composite method for MQTY orders.
Subscribers who wish to utilize the MinExec methodology should contact Market Operations at 646.568.2330 or marketops@iextrading.com.
What amendments can I make to MQTY?
Subscribers are able to amend the MQTY value for submitted orders up or down. MQTY may also be removed completely, or added to an order which did not previously contain a MQTY.
How is queue priority affected when I amend MQTY?
Queue priority is lost when amending MQTY in any way.
How do I amend MQTY?
When amending an order without MQTY present on the original order, the Subscriber can add a MQTY by simply populating Tag110.
When amending an order with MQTY present on the original order, the Subscriber can:
- Adjust MQTY by sending a new value in Tag110.
- Remove MQTY by sending "0" in Tag110.
- Note: MQTY may be preserved by either sending the same value in Tag110 or omitting Tag110 from the FIX message.
Where can I learn more?
- 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.