Retail routing to IEX exchange

[Rum Runner]

I think retail trades are impacted more than people think. If anything, it seems like there's even less oversight/regulation of retail orders than institutional orders. Just look at how much money Citadel is making after buying up all the retail order flow.

Internalization and PFOF is a different issue. If someone is routing to IEX, I would assume they also (or previously) route to other exchanges. Cutting internalization/PFOF out of the loop.

 

[jtrader33]

Livevol has incorrect information. Here is a screenshot. Just enter a stock symbol on the TWS, click on direct and you can choose between SMART and all the other exchanges.

Def- will orders directly routed to IEX via API have the same cost plus comm rate as SMART routed orders?

 

[def]

Def- will orders directly routed to IEX via API have the same cost plus comm rate as SMART routed orders?

My understanding is that they have the same cost plus comm rate as any other API orders using the direct route.

 

[promagma]

I'd like to know, does IEX route out, and if so, do they "thor" it?

 

[def]

I'd like to know, does IEX route out, and if so, do they "thor" it?

Don't know about Thor -you'll have to ask them. But from their site:


Order Execution & Routing

For any execution to occur on the IEX ATS during Regular Trading Hours, the applicable order price must be equal to or better than the Protected NBBO, unless the order is marked ISO or unless the execution falls within another exception set forth in Rule 611(b) of Regulation NMS.

Unless otherwise specified by Subscriber order instructions, incoming orders will first be tested for execution matches against the Order Book, and any unexecuted shares will be cancelled, posted on the Order Book, or routed as IOC orders to one (1) or more away Trading Centers. The process of resting against the Order Book and/or routing to away Trading Centers may be repeated, consistent with Subscriber order instructions, order type and routing strategy definitions, and prevailing market conditions.

The IEX smart order router (SOR) is connected to the thirteen (13) national securities exchanges currently operating, and LavaFlow ECN.

 

[jtrader33]

My understanding is that they have the same cost plus comm rate as any other API orders using the direct route.

Thanks for the reply def. I believe that means they're not eligible for cost plus and fall under a flat rate of $.013/share:

https://www.interactivebrokers.com/en/index.php?f=commission&p=stocks2

My average all-in using SMART API orders is ~.0034/share, so we're talking roughly 4x the cost to send orders to IEX. I'm appreciative of the fact that you guys have added them, but without the orders being included in the cost plus structure, using them isn't a realistic option. Would IB consider adding these to the cost plus structure? I know you've done this in the past in similar situations (e.g. native pegged orders).

 

[rwk]

Thanks for the reply def. I believe that means they're not eligible for cost plus and fall under a flat rate of $.013/share:

https://www.interactivebrokers.com/en/index.php?f=commission&p=stocks2

My average all-in using SMART API orders is ~.0034/share, so we're talking roughly 4x the cost to send orders to IEX. I'm appreciative of the fact that you guys have added them, but without the orders being included in the cost plus structure, using them isn't a realistic option. Would IB consider adding these to the cost plus structure? I know you've done this in the past in similar situations (e.g. native pegged orders).

I have a similar question. I prefer to continue using SMART routing, and I notice that IEX is one of the places that SMART routs to. I recall that we can tweak SMART routing somewhat, and it would be nice to be able to preference IEX when I am posting bids or offers. I am more interested in getting good fills than in getting rebates.

 

[dealmaker]

I have a similar question. I prefer to continue using SMART routing, and I notice that IEX is one of the places that SMART routs to. I recall that we can tweak SMART routing somewhat, and it would be nice to be able to preference IEX when I am posting bids or offers. I am more interested in getting good fills than in getting rebates.

As most traders should be...

 

[IBsoft]

I have a similar question. I prefer to continue using SMART routing, and I notice that IEX is one of the places that SMART routs to. I recall that we can tweak SMART routing somewhat, and it would be nice to be able to preference IEX when I am posting bids or offers. I am more interested in getting good fills than in getting rebates.

We will not route your non marketable orders to IEX. For now IEX is a dark pool w/ small volume. Your orders would thus not be visible and would be exposed to only a small percentage of nation wide marketable orders.

 

[just21]

I have a similar question. I prefer to continue using SMART routing, and I notice that IEX is one of the places that SMART routs to. I recall that we can tweak SMART routing somewhat, and it would be nice to be able to preference IEX when I am posting bids or offers. I am more interested in getting good fills than in getting rebates.

Not according to Thomas Peterffy, Chairman and CEO of Interactive Brokers

"At this point, IEX is a dark pool that will forward enter market sweep orders, so that they get to their destinations exactly at the same time. We made IEX available, but believe that our customers remain to be better served by our smart router, which not includes IEX also."

http://seekingalpha.com/article/214...-2014-results-earnings-call-transcript?page=3