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Introducing IEX Market Maker Peg Order Type

IEX Trading Alert #2017 - 025

Overview

Pending SEC approval, on Monday, September 18, 2017, IEX will introduce a new Market Maker Peg order type designed to simplify market maker compliance with continuous quoting and pricing obligations.

The IEX Market Maker Peg order type functions as a displayed Pegged Order that allows for quoting at an offset to a defined Reference Price (NBB for buys and NBO for sells, or if there is no NBB or NBO, the latest last sale eligible trade). Upon entry, the quote is priced at a specific distance away ("Designated Percentage") from the Reference Price based on time of day and the security's limit-up limit-down (LULD) tier designation. The order is then repriced automatically as the Reference Price moves a defined percentage away or towards the order. A Market Maker Peg order will continue to be repriced until it reaches a Member-defined limit, if any, or an impermissible price (e.g., priced at $0.00), at which time the order will be cancelled back to the Member. If a Market Maker Peg order is decremented to less than one round lot, the order will also be canceled back to the Member.

For further information about registering as a Market Maker on IEX and the functionality of the Market Maker Peg order type, please see the IEX Market Maker Specification.

Additional Detail

The Market Maker Peg order type will be available for testing in the IEX Testing Facility ("ITF") beginning Monday, August 28. For complete details regarding order entry settings required for Market Maker Peg orders, please refer to the IEX FIX Specification.

For further information on IEX Market Maker Registration and Quoting Obligations, please review IEX Rules 11.150 and 11.151, respectively.

More Information

Please contact IEX Market Operations or Sales with any questions:

About IEX

IEX is on a mission to build fairer markets. Founded in 2012 and headquartered in New York City, IEX introduced its first trading venue in 2013 and launched as a U.S. stock exchange in 2016. IEX is the stock exchange that believes that every investor has the right to trade on equal and fair terms, on every trade. Learn more at: iextrading.com.