FIA PTG submitted a second comment letter to the Securities and Exchange Commission regarding amendments to the IEX application for registration as a National Securities Exchange urging the Commission to re-open the comment period in light of the recent IEX amendment to afford the public adequate opportunity to review and provide feedback on IEX’s proposed changes.
FIA PTG first filed comments in November of 2015 noting three concerns with IEX's application:
1. IEX’s proposal to give protected status to its quotes despite their being subject to an intentional access delay
2. The introduction of pegged order types with a speed advantage over other order types
3. IEX's affiliated broker dealer not being subject to the access delay in the same way as other non-affiliated broker dealers.
While IEX's amended application appears to address this third concern regarding fair access, the issues with the access delay and pegged orders remain outstanding.
FIA PTG notes in its most recent comments that, "We were pleased to see that IEX responded positively to the concerns about its attempt to provide latency advantages to its affiliated broker-dealer. IEX has not, however, done anything to address FIA PTG’s other two concerns. Specifically, IEX’s intentional access delay still does not comply with Rule 611 of Regulation NMS, and as such, these purposely delayed quotes should not be protected. In addition, as described in our previous letter, IEX should not be permitted to give hidden pegged orders a speed advantage over other order types, including displayed quotations."
FIA PTG urged the Commission not to approve the IEX application until these issues are addressed.