🔵 IEX Competitive Intel
24X National Exchange, a newer entrant to the U.S. equity exchange market, is establishing its initial fee schedule specifically for retail orders handled by Retail Member Organizations (RMOs). The exchange is adopting a maker-taker model with a $0.0038/share rebate for displayed liquidity provision and a $0.00295/share fee for liquidity removal — intentionally running at negative net capture on displayed adds to aggressively attract retail order flow during its early growth phase. Because this is a fee filing, it takes effect immediately without SEC approval, though the SEC retains the ability to suspend it within 60 days if it raises public interest concerns. In practice, this means 24X is now open for retail order flow business with competitive pricing benchmarked against MEMX and MIAX Pearl, and RMOs can begin routing retail orders to 24X under these published rates.
IEX RELEVANT 24X is a direct competitor in the U.S. equity exchange space and is actively trying to attract retail order flow with aggressive maker-taker pricing, including a negative net capture strategy (paying out more in rebates than it collects in fees) to gain market share. This is directly relevant to IEX because retail order flow is a key battleground: IEX's model emphasizes investor protection and execution quality over rebate-driven routing incentives, which puts it philosophically at odds with the maker-taker model 24X is deploying. As 24X ramps up with subsidized rebates, it may divert retail order flow from IEX and other venues. However, this also reinforces IEX's differentiation narrative — IEX can position itself as the alternative to rebate-chasing, highlighting that venues offering unsustainably high rebates (24X explicitly acknowledges the negative net capture is temporary) may not align with long-term best execution interests. IEX should monitor whether 24X gains meaningful retail market share, as that would signal the degree to which rebate incentives continue to dominate routing decisions over quality-based factors.
Cboe BZX proposed in January 2026 to modify its opening auction process so that under certain market conditions, the auction can be delayed to improve price discovery and ensure executions happen at prices that better reflect current market reality. The SEC is simply extending its review deadline from March 13 to April 27, 2026 — this is a routine procedural extension, not a substantive judgment on the merits. It does not kill or pause the proposal; the SEC just needs more time to evaluate it. For market participants, nothing changes yet — the proposal is still under review and the current opening auction mechanics remain in place.
IEX RELEVANT Opening auction mechanics at competitor exchanges are strategically relevant to IEX. If Cboe BZX gains the ability to dynamically delay its opening auction under volatile conditions, it could improve fill quality and price discovery for participants using BZX-listed or BZX-traded securities at the open, potentially attracting order flow away from other venues. IEX's own focus on price discovery quality and protecting investors from stale or manipulated prices makes this worth monitoring — a successful BZX implementation could set a precedent or raise the bar for what investors expect from opening auction processes across all exchanges, including IEX.
24X National Exchange, a relatively new entrant in the U.S. equity market, is adjusting its rebate structure to attract more order flow. It is raising the rebate for displayed liquidity-adding orders from $0.00295 to $0.0034 per share — deliberately operating at a loss (negative net capture) on those transactions — while cutting the rebate for midpoint peg orders from $0.00295 to $0.0025. Because this is a fee change, it takes effect immediately without requiring SEC approval, though the SEC retains the right to suspend it within 60 days if it raises concerns. The practical result is that 24X is subsidizing displayed liquidity provision to gain market share, competing directly with established maker-taker venues like MEMX and MIAX Pearl on rebate levels.
IEX RELEVANT 24X is a direct competitor in the U.S. equity exchange space and is aggressively using elevated rebates — including a negative net capture strategy — to attract displayed liquidity and grow market share. This is relevant to IEX because it intensifies the maker-taker rebate competition that IEX has long positioned itself against. IEX's model deliberately avoids payment-for-order-flow and high rebate structures, appealing to brokers and investors skeptical of conflicts of interest. As 24X escalates rebate levels to attract flow, it could draw volume away from IEX and other venues, putting pressure on IEX's market share. Notably, 24X's simultaneous reduction of its midpoint peg rebate could make IEX's own midpoint offerings relatively more attractive for non-displayed liquidity, which is a minor offsetting competitive benefit.