IEX Exchange announced that it has convened leading retail brokerage firms to examine how market structure could change in response to the recent uptick in retail investor participation in the equities market.
Nearly a dozen retail brokers have joined IEX Exchange’s Retail Trading Advisory Committee, or RTAC, including, Betterment Securities, LLC, E*TRADE Securities LLC, Fidelity Investments, Inc., Interactive Brokers, LLC, Public.com (Open to the Public Investing, Inc), RBC Capital Markets, Inc., Robert W. Baird & Co., Robinhood Securities, LLC, TD Securities, Inc., TradeStation Securities, Inc., and Wells Fargo Securities, LLC.
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RTAC participants are meeting to evaluate how market infrastructure, and rules governing market operations, can and should evolve as retail participation in the equities market continues to grow.
“As an exchange with a mission to do right by all investors we felt bringing the retail broker community together was essential and timely given the unprecedented growth participation in our markets,” said Ronan Ryan, President of IEX Exchange and Co-Founder of parent company IEX Group.
The RTAC provides a venue to discuss opportunities to innovate and champion the interests of individual investors at a time when retail investing has skyrocketed across America. Industry sources estimate that retail trading accounts for as much as 25 percent of total U.S. equity market volume on the most active trading days, prompting market participants and regulators to examine whether existing market structure rules and operations serve the retail investing public.
RTAC will focus on three key areas:
- Consultation on proposed new order types, market rules, the introduction of new products and product enhancements, and pricing of services.
- Consideration of the impact of new regulatory requirements and proposals for regulatory changes on the retail investor and their brokers.
- Policies and programs to enhance the efficiency and effectiveness of the IEX market, consistent with the goals of fair access, market integrity, transparency, and avoidance of conflicts of interest.
IEX Exchange already hosts three successful advisory committees that focus on different areas of market structure and invite participants, who are not necessarily members of IEX Exchange, to develop industry relationships, learn from one another, and identify solutions to market issues. These committees include the IEX Buyside Trading Advisory Committee, IEX Asset Owner Market Structure Committee, and IEX Sellside Quality of Markets Committee.
The formation of RTAC also allows IEX Exchange to hear from the firms that directly serve the retail trading community so it can evolve and enhance its retail-focused products. In July, IEX Exchange received approval from the Securities and Exchange Commission (SEC) to make enhancements to its Retail Price Improvement Program (Retail Program).
“Our markets are driven by two things: the needs of investors and innovation. We look forward to working with the RTAC members to learn how we can innovate and partner with them in the service of the retail investing community,” Ryan added.
More information about the new features of IEX Exchange’s Retail Program can be found in this Trading Alert and summary.
Source: IEX
