IEX plans corporate listings on 'Flash Boys' exchange in 2017

Tue Sep 20, 2016 4:16pm EDT
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By John McCrank

NEW YORK (Reuters) - IEX Group, the newest U.S. equities exchange operator, is actively courting companies to list their stocks on its exchange, according to a letter sent to potential listing clients that was obtained by Reuters.

IEX plans to begin listing companies in 2017, and is offering "significant incentives" to its initial founding issuers, according to the letter, which did not go into more detail.

IEX declined to comment.

The New York-based company, which was featured in Michael Lewis's book "Flash Boys: A Wall Street Revolt," will challenge Intercontinental Exchange Inc's (ICE.N: Quote) New York Stock Exchange and Nasdaq Inc (NDAQ.O: Quote) for corporate listings.

"Flash Boys" followed the exchange's founders as they built what they saw as a more investor-focused market that included a "speed bump" to slow trades by a fraction of a second to help level the playing field for fast and slow traders alike.

The book caused a heated debate on Wall Street after Lewis said the market was rigged by profit-hungry exchanges in favor of high-frequency trading firms.

IEX launched The Investors Exchange on Aug. 19 after operating an off-exchange trading platform for more than 2-1/2 years, and is hoping its unique model will attract business.

"Our exchange is designed to protect long-term fundamental investors from predatory trading strategies that increase costs for your shareholders and can cause unnecessary volatility in your stock," IEX said in the letter.     Continued...

Brad Katsuyama, President and CEO of IEX Group, Inc. speaks at the Sandler O'Neill + Partners, L.P. Global Exchange and Brokerage Conference in New York, June 4, 2015.  REUTERS/Mike Segar