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IEX

IEX stands for the Investors Exchange — a U.S. stock exchange launched in 2016 with the mission to level the playing field between Wall Street and Main Street. Unlike traditional exchanges, IEX was created to protect long-term investors from predatory high-frequency trading (HFT) tactics by introducing unique features that prioritize fairness and transparency.
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IEX gained national attention from the book Flash Boys by Michael Lewis, which exposed how some market structures favored speed and insider advantages. IEX emerged as a reformer, offering an alternative approach to stock trading.

IEX’s core mission is to create a fairer, more transparent exchange — one where investors and institutions aren’t disadvantaged by speed-based trading games. It aims to build trust in public markets by eliminating structural unfairness and creating a more investor-friendly environment.

Its slogan — “Built for investors, not speed” — highlights its focus on market integrity over milliseconds of speed advantage.

The defining feature of IEX is the Speed Bump — a 38-microsecond delay that slows down incoming orders. This minor delay prevents high-frequency traders from jumping ahead of large institutional orders by exploiting faster data feeds.

Other key features include:

  • No co-location: Traders can’t install servers next to the exchange to gain an advantage.
  • Simplified order types: Reduces complexity and reduces opportunities for manipulation.
  • Focus on transparency: Execution quality and pricing rules are designed to benefit investors, not intermediaries.

IEX is popular among long-term institutional investors, such as mutual funds, pension funds, and endowments. These investors value the protection IEX offers against front-running and price manipulation.

While IEX handles a smaller share of U.S. trading volume compared to giants like NYSE or NASDAQ, it has earned a reputation for trustworthiness and innovation in market structure.

IEX prioritizes market quality over volume, making it fundamentally different from more traditional exchanges.

IEX became a fully registered national securities exchange in 2016, regulated by the U.S. Securities and Exchange Commission (SEC). While it originally started as an alternative trading system (ATS), its elevation to exchange status marked a significant step in promoting competition and reform in U.S. markets.

  • IEX is a mission-driven exchange that promotes fairness over speed.
  • It introduced the speed bump to reduce HFT advantages and protect investors.
  • While smaller in size, it plays a meaningful role in shaping market structure reform.
  • IEX reminds us that in modern markets, transparency and trust are just as important as liquidity and speed.