(Reuters) - IntercontinentalExchange Inc plans to eliminate at least 15 order types from the New York Stock Exchange in order to help simplify the structure of the market, an executive of the exchange operator said on Tuesday.
There are well over 50 order types, possibly 100, that brokers can use to place orders on the NYSE, said Charles Vice, president and chief operating officer of ICE, which closed its $11 billion acquisition of NYSE Euronext in November. ICE's futures market has less than 10 order types, he said.
The structure of equity markets has come under increased scrutiny in the past couple of months following the release of Michael Lewis' book "Flash Boys: A Wall Street Revolt," which claims the U.S. stock market is rigged, with exchanges giving special access to high-speed electronic trading firms.
ICE's Chief Executive, Jeff Sprecher, has been critical of the complex structure of U.S. equity markets, vowing to cut the amount of order types on the NYSE and calling on the U.S. Securities and Exchange Commission (SEC) to end the practice of exchanges giving rebates to brokers to win their order flow.
"Some things we can do unilaterally, other things have to be more of the industry or the SEC saying that it needs to be done, but we are at least retiring 15 order types, so it's a very small step, but it's a step in the right direction," Vice told a Commodity Futures Trading Commission industry panel.
Reporting by John McCrank in New York; Editing by Sofina Mirza-Reid