- IEX, the stock exchange made famous in Michael Lewis’ “Flash Boys,” just got the green light to go after the marquee business of its rivals New York Stock Exchange and Nasdaq.
- The Securities and Exchange Commission amended Rule 146, the final regulatory hurdle for IEX to start listing companies on its exchange.
- The exchange, which was originally hoping to have its listings business up and running in October, plans to list its first company in early 2018.
America’s newest exchange just got the green light from regulators to start up its listings business, but it doesn’t plan to list its first company until early 2018.
IEX, the startup made famous in Michael Lewis’ popular book “Flash Boys,” was originally hoping to snag a listing from one of its competitors in October, but that was delayed because the Securities and Exchange Commission had yet to amend the necessary rule to allow IEX to operate its listings business.
The SEC posted the amendment to rule 146 Tuesday, but an “operative delay” mandates the exchange to wait an additional 30 days to open shop. Since that lands near the holiday season, the exchange is waiting until after the New Year to list its first company.
The company filed its petition for the amendment in September 2016.
“We’re thrilled that the SEC has taken this step,” Sara Furber, the head of listings for the exchange, said.”We look forward to bringing companies a differentiated listings option that aligns the interests of companies and their shareholders.”
There’s a lot riding on IEX getting a listing. A boost in the number of companies listed on its exchange will likely translate into a boost in the amount of trading that takes place on the exchange, as stocks are more likely to trade on the exchange they are listed on, particularly when the market opens and closes. This could help boost IEX’s 2% market share. In addition, having a well-known company switch would represent an endorsement of IEX’s market model, and help further boost its visibility.