IEX is a national securities exchange in the United States known for its focus on fairness, transparency, and investor protection. It was created to address concerns about high-frequency trading advantages that exist on many traditional exchanges. IEX uses unique technology—most famously its 350-microsecond “speed bump”—to slow down incoming orders very slightly, reducing the ability of ultra-fast traders to exploit tiny delays between venues.
The exchange operates just like major exchanges such as the NYSE or the Nasdaq, allowing investors to buy and sell U.S. equities. Its rules and execution model are designed to give all traders equal access to prices, regardless of their technological capabilities. This makes IEX especially popular with long-term investors, asset managers, and institutions seeking fair execution without hidden disadvantages.
IEX also publishes clear, detailed documentation about its matching engine, routing logic, and market behavior. This transparency has helped build trust and encourage broader usage among brokers and trading platforms. While IEX has a smaller market share than the largest exchanges, it plays a significant role in shaping conversations about fairness in U.S. equity markets.
IEX helps improve market fairness by reducing speed-based advantages, promoting transparency, and giving investors a level playing field when executing trades.
The IEX speed bump delays incoming orders by 350 microseconds—an amount unnoticed by human traders but meaningful for high-frequency algorithms. This delay reduces the ability of ultra-fast traders to react to price changes faster than everyone else. By doing so, IEX helps protect investors from predatory strategies based on speed rather than genuine market supply and demand.
While IEX offers the same core functionality as NYSE or Nasdaq, it stands out for its focus on fairness and transparency. It avoids complex order types that can give sophisticated traders an edge. Its matching engine is designed to minimize speed-driven advantages and reduce routing games. These features attract traders who prioritize clean, predictable execution.
Institutions, asset managers, and long-term investors often use IEX because of its balanced execution model. They appreciate the reduced chance of being disadvantaged by low-latency trading strategies. Brokers also route orders to IEX when seeking stable, high-quality execution for clients. Although HFT firms also participate, the environment is more neutral compared to other venues.
FinFeedAPI’s Stock API provides historical U.S. equity data, allowing users to analyze price behavior and liquidity on exchanges such as IEX and compare execution trends across venues.
