🔵 IEX Competitive Intel
Cboe EDGX is trying to launch a Retail Price Improvement (RPI) program that would let designated market makers provide sub-penny price improvement to retail order flow, similar to programs already operating at NYSE, Nasdaq, and other exchanges — with a few twists including allowing retail orders to rest on the book (not just IOC) and enabling midpoint-pegged retail price improvement orders. The SEC has declined to approve this on its normal timeline and is formally opening a review proceeding, which means the proposal is paused — not killed — while the Commission solicits more public comment and examines whether the program is consistent with investor protection and anti-discrimination standards under the Exchange Act; EDGX can still get this approved but faces additional scrutiny and delay. Until the SEC concludes its review, the program does not launch and retail order flow routing to EDGX remains unchanged.
IEX RELEVANT If approved, EDGX's RPI program would intensify competition for retail order flow among exchange-based retail improvement programs, potentially drawing order flow that might otherwise reach IEX, which competes on execution quality and investor-protection grounds rather than offering a dedicated retail auction mechanism.