What IEX Brings to Markets as a Stock Exchange

The video discusses IEX, a trading platform that differs from traditional exchanges by not using a rebate model and focusing on client order flow protection. IEX's flat fee structure and transparency aim to improve price discovery and reduce predatory trading practices. The SEC has approved IEX, recognizing its potential to disrupt the current exchange model. The video highlights the impact of rebates on trading and the potential for IEX to increase market liquidity.

What is one key difference between IEX and traditional exchanges?

• IEX uses a rebate model.

• IEX charges higher fees.

• IEX sells client data.

• IEX has a flat fee structure.

Why does IEX not use a rebate model?

• Rebates are illegal.

• Rebates slow down trading.

• Rebates distort price discovery.

• Rebates increase transaction costs.

What approval did IEX receive that is significant for its growth?

• Approval from the SEC.

• Approval from the NASDAQ.

• Approval from the Federal Reserve.

• Approval from the NYSE.

How might IEX influence liquidity in the market?

• By eliminating all other exchanges.

• By driving liquidity back into displayed quotes.

• By increasing off-exchange trading.

• By reducing the number of trades.

What is a potential future change in the market due to IEX's influence?

• Higher transaction fees.

• More reliance on dark pools.

• Reduction of the rebate model.

• Increased use of the rebate model.