SEC approves IEX’s application to become national exchange by Renae Merle

Renae Merle discusses a long awaited development in the story of start-up company, IEX. Merle begins,

Federal regulators on Friday approved the application of a startup company, IEX, to become a national stock exchange, dismissing the concerns of Wall Street stalwarts who said the company could wreak havoc on the markets.

Four-year-old Investors’ Exchange, or IEX, says it has a simple strategy: Provide a venue for investors who want to buy or sell stocks where sophisticated high-frequency traders, who can make thousands of trades in a blink of an eye, do not have the advantage.

IEX currently operates as a private exchange, or dark pool, but has less than 2 percent of the market. In order to challenge Wall Street heavyweights such as the New York Stock Exchange and Nasdaq, it needed to become a registered exchange. The Securities and Exchange Commission approved its application to make that conversion late Friday.

Continue reading the full story here: SEC approves IEX’s application to become national exchange

Posted by Allison Trupp, Associate Editor, Wealth Strategies Journal