IEX plans to launch IEX Options at the end of the first quarter of 2026, pending regulatory approval, the firm, founded in 2012, announced.
Operating a portfolio of Exchange, Digital Assets, and Technology businesses, IEX Exchange has been aiming to draw in more business from retail investors, and in the process, the upstart trading platform convened regular meetings with many brokerages.
It was in September 2024 that IEX first announced it planned to launch IEX Options, designed to address key challenges around adverse selection. Since then, the firm realized several important milestones, including expanding its Options team, filing its proposed Rule Book with the U.S. Securities & Exchange Commission (SEC) and ongoing engagement with regulatory authorities and industry stakeholders.
“Quote confidently, manage risk and deploy capital effectively”
John Palmer, Head of Options at IEX, said: “Our approach to launching IEX Options is rooted in product innovation and differentiated technology. We’ve taken the time to build a market architecture designed to enhance market participants’ ability to manage risk, with the goal of driving more liquidity and better prices for the market at large. The positive response from our clients reinforces our confidence in the value IEX Options will bring to the market.”
Ivan Brown, who leads business and product development for IEX Options, commented: “The options market continues to grow rapidly, driving demand for innovative solutions that help participants quote confidently, manage risk and deploy capital effectively, and expand their competitive toolkit. We’re encouraged by the strong and ongoing engagement with our clients, who recognize the utility of a differentiated exchange model that helps provide new solutions for a fast-growing and robust market.”
IEX prevents high-frequency trading
IEX’s new options exchange is built on the company’s reputation for innovation in trading technology. Since launching in 2016, IEX’s U.S. equities exchange has been recognized for its transparent business model and proprietary order protection solutions, including its Signal and D-Limit order types. IEX captures 2.5-3% of the U.S. equities market and has traded over $3.5 trillion in notional value using D-Limit.
Last year, IEX appointed ex-Cboe John Palmer to lead the division and ex-NYSE Ivan Brown for product and business development.
IEX Exchange has been aiming to draw in more business from retail investors, and in the process, the upstart trading platform convened regular meetings with many brokerages. The exchange operator, which was the subject of Michael Lewis’ 2014 book “Flash Boys”, obtained SEC’s approval to register as the 13th national securities exchange earlier in June 2016.
Unlike other exchanges, the heart of IEX’s strategy is based on what the firm calls a ‘speed bump’ which slows down trading, requiring all trades to go past by 350 microseconds in a bid to prevent high-frequency traders from racing ahead of slower investors to take advantages of changes in bids and offers before they update.
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