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I'm willing to believe you but do you have any source at all? Are you saying big block traders are staying on IEX because the fees are lower? That just doesn'
by wdewind 11y ago
I'm willing to believe you but do you have any source at all? Are you saying big block traders are staying on IEX because the fees are lower? That just doesn't make sense to me, the fee overhead is almost insignificant with big block trades. It's not a question of do the trades move the market, it's a question of can the trades fully execute before the market has moved. Obviously they move the market.
- vasilipupkin 11y agoLook up their fees vs their competitor fees and their volume share of the equity market, and you'll have your answer.
- wdewind 11y agoI just want to make sure I'm understanding you properly: you are saying that big block traders are using IEX because it has low fees, not because the IEX system is preventing the pricing from shifting during the order, correct?
- vasilipupkin 11y agoyes. Also "big block traders using IEX" is a big statement. IEX has 1.5% of US equity volume and at least 20% of IEX volume are not big block traders. So, they aren't really using IEX that much. But to the extent they are using it, it's because the fees are lower and also it's because it's always nice to put pressure on other exchanges via additional competition for liquidity