7 May 2025
📉IEX Proposes Rule Change on Post Only Orders for Liquidity
Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the Circumstances Under Which Post Only Orders May Remove Liquidity on Entry
Summary
The Investors Exchange LLC proposes a modification to its Post Only order type, requiring a minimum price improvement of $0.01 for execution upon entry. This change aims to encourage the posting of displayed liquidity and enhance market efficiency, aligning IEX with similar practices in other exchanges. The new rules are set to provide greater price determination for members and streamline trading operations.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The rule change affects how Post Only orders execute on the Investors Exchange LLC, requiring a minimum price improvement of $0.01. This impacts liquidity provision and compliance for trading practices, critical for businesses utilizing these orders.