IEX Listing Requirements


The Investors Exchange (IEX) is a U.S. based stock exchange that focuses on fair trading and high-speed service. Started relatively recently in 2012, the IEX opened for trading on October 25, 2013. They were officially approved by the SEC in June, 2016. The exchange was started in an attempt to counter controversial trading practices on Wall Street and bring a strong element of “fair play” to securities trading.

With large broker-dealer names trading on the exchange such Goldman Sachs, Morgan Stanley, and Deutsche Bank, the IEX utilizes a modern optical fiber connection for its trading engine. This allows for extremely fast trades and neutralizes speed trading advantages that some high-frequency traders employ.

The IEX’s trading hours are from 9:30am - 4:00pm Eastern Time, Monday through Friday.

Any firm can apply for membership on the IEX. The exchange follows a very transparent fee schedule, with different fees applying for different service offerings. The fee schedule is as follows:

Membership Fees:

Membership

Fee

Investors Exchange

Free

Connectivity Fees:

Service

Fee

10G Physical Port

Free

1G Physical Port

Free

Logical Port

Free

Market Data Fees:

Service

Fee

Internal Distribution Fee

Free

External Distribution Fee

Free

Usage Fee

Free

Transaction Fees:

Fee Code

Description

Fee

Fee<$1.00

L

Displayed Match Fee

- Taking Displayed Liquidity

- Providing Displayed Liquidity

Free

Free

I

Displayed Match Fee

- Taking Non-Displayed Liquidity

- Providing Non-Displayed Liquidity

$0.0009

.30% of TDVT

S

Internalization Fee

-Member executes against resting liquidity provided by such Member

Free

Free

Alpha

Routing and removing liquidity (all routing options)

Cost + $0.0001

Cost + $0.0001


Registration and Processing Fees:

The following fees are collected and retained by FINRA via the CRD registration system for the registration of associated persons of IEX Members that are not also FINRA Members:

  • $100 for each initial Form U4 filed for the registration of a representative or principal;
  • $110 for the additional processing of each initial or amended Form U4, Form U5 or Form BD that includes reporting, amendment, or certification of one or more disclosure events or proceedings;
  • $45 annual for each of the Member’s registered representatives and principals for system processing;
  • $15 for processing and posting to the CRD system each set of fingerprint cards submitted electronically by the Member, plus a pass-through of any other charge imposed by the United States Department of Justice for processing each set of fingerprints;
  • $30 for processing and posting to the CRD system each set of fingerprint cards submitted in non-electronic format by the Member, plus a pass-through of any other charge imposed by the United States Department of Justice for processing each set of fingerprints and
  • $30 for processing and posting to the CRD system each set of fingerprint results and identifying information that has been processed through a self-regulatory organization other than FINRA.

Gaining Membership

To gain membership as either a broker-dealer or registered security on the IEX, a company must first complete an online questionnaire, located at:https://www.iextrading.com/trading/membership/

A full listing of IEX membership documents, rule specifications, and other resources are located at the following link: https://www.iextrading.com/trading/documents/

A Transfer Agent You Can Count On

As a full-service transfer agency with over 30 years of industry experience, Colonial Stock Transfer can assist your firm with getting listed on the IEX trading platform. Please contact us today with any questions.