PTG comments on IEX Options Exchange proposal
Feb 26, 2025
In a letter filed with the Securities and Exchange Commission, the PTG has raised concerns about Investors Exchange's plans to operate a new options exchange (IEX Options) as a fully automated trading system built on the core functionality of the IEX equities platform.
In a letter filed with the Securities and Exchange Commission, the PTG has raised concerns about Investors Exchange's plans to operate a new options exchange (IEX Options) as a fully automated trading system built on the core functionality of the IEX equities platform.
Consistent with PTG's previous opposition to IEX’s intentionally artificially introduced latency delay (the “speedbump”) in their equity markets, PTG opposes the proposal’s plans for replicating this model in the options markets.
PTG also does not support the proposal’s plan to provide additional protection to options market makers through the use of an Options Risk Parameter (ORP). ORP introduces the novel concept of a displayed options quote being repriced by the exchange based on a signal driven from equities trading activity. For the first time, an exchange will adjust prices of a quote in one asset class using inputs from another asset class. PTG believes the uniqueness of this market structure mechanism warrants further industry discussion and evaluation before it is allowed.
Accordingly, PTG encourages the SEC not to approve the proposal.
Read the letter here: