📈IEX Implements Quote Imbalance Indicator for Trading Stability
Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend IEX Rule 11.190(g) To Add a Quote Imbalance Indicator
Summary
The Investors Exchange LLC (IEX) proposes a new Quote Imbalance Indicator (QII) to improve trading strategies by assessing supply and demand imbalances for securities during market hours. This proprietary calculation aims to enhance market stability by restricting certain order types from exercising price discretion during periods of quote imbalance, thus potentially increasing execution quality for users.
Agencies
- Securities and Exchange Commission
Business Impact
$$ - Med
The regulatory document indicates the introduction of a Quote Imbalance Indicator (QII) for D-Peg and P-Peg orders, aimed at enhancing trading strategy stability. Businesses utilizing these order types may need to adapt their trading practices to avoid unfavorable executions, impacting operational strategies and market positioning.