REUTERS/Eduardo Munoz
Brad Katsuyama, chief executive of IEX Group
- There's been an executive shakeup at upstart stock exchange IEX.
- IEX hired Dan Cummings as Head of Corporate Advisory, which includes IEX's listings business, to replace Sara Furber who is taking on the CFO role.
There's been an executive shakeup at upstart stock exchange IEX as it continues to try to lure a listing from one of its rivals.
IEX has hired Dan Cummings as Head of Corporate Advisory, which includes IEX's listings business, from Bank of America Merrill Lynch. He replaces Sara Furber, a former Morgan Stanley executive who is taking on the CFO role.
The company, which said it would have its listings business up and running in early 2018, has failed to attract a company to list its share on its exchange. That's despite the firm giving companies big incentives to list shares on the venue.
IEX was willing to cover the listings cost of companies which announce their intent to switch over to their exchange within 120 days of the first IEX listing, according to a filing with the Securities and Exchange Commission. Such firms will get at least $250,000 in fee credits.
Many market observers thought the first switch would by Wynn Resorts, but the ouster of chief executive Steve Wynn for sexual assault accusations may have pumped the brakes on a switch.
There's a lot riding on the ability of IEX to attract a listing. A boost in the number of companies listed on its exchange will likely mean an increase in the amount of trading that takes place on it, as stocks are more likely to trade on the exchange they list on. This could help boost IEX's 2% market share.
In addition, having a well-known company switch would represent an endorsement of IEX's market model, and help further boost its visibility.