| NEW YORK, Sept 20
NEW YORK, Sept 20 IEX Group, the newest U.S.
equities exchange operator, is actively courting companies to
list their stocks on its exchange, according to a letter sent to
potential listing clients that was obtained by Reuters.
IEX plans to begin listing companies in 2017, and is
offering "significant incentives" to its initial founding
issuers, according to the letter, which did not go into more
IEX declined to comment.
The New York-based company, which was featured in Michael
Lewis's book "Flash Boys: A Wall Street Revolt," will challenge
Intercontinental Exchange Inc's New York Stock Exchange
and Nasdaq Inc for corporate listings.
"Flash Boys" followed the exchange's founders as they built
what they saw as a more investor-focused market that included a
"speed bump" to slow trades by a fraction of a second to help
level the playing field for fast and slow traders alike.
The book caused a heated debate on Wall Street after Lewis
said the market was rigged by profit-hungry exchanges in favor
of high-frequency trading firms.
IEX launched The Investors Exchange on Aug. 19 after
operating an off-exchange trading platform for more than 2-1/2
years, and is hoping its unique model will attract business.
"Our exchange is designed to protect long-term fundamental
investors from predatory trading strategies that increase costs
for your shareholders and can cause unnecessary volatility in
your stock," IEX said in the letter.
NYSE and Nasdaq compete fiercely for corporate listings,
from courting initial public offerings to luring companies
already listed on their rival exchanges, both of which can be
public relations windfalls.
Exchanges charge various listing fees based on factors such
as the amount of shares a company lists.
Last quarter, ICE earned $105 million in revenue from
corporate and other listings. NYSE lists more than 2,400
companies, according to its website. (www.nyse.com/list)
Nasdaq earned $68 million in revenue from listing services
last quarter. The exchange lists around 3,100 companies,
according to its website. (bit.ly/2cRvWBD)
Company shares can trade on all 13 U.S. exchanges,
regardless of where they are listed.
NYSE offers listing companies the chance to ring the opening
or closing bell on the floor of the New York Stock Exchange,
giving them exposure to the TV news channels that broadcast from
the iconic location. Nasdaq puts listing companies' names on an
electronic billboard at its Times Square location in New York.
Bats Global Markets lists its own stock, but has
focused on listing exchange-traded funds rather than companies.
(Reporting by John McCrank; Editing by Paul Simao)