Example Scenario

Parent-Order Performance That Meets the Mark

D-Limit is designed to deliver better-performing child orders, which in turn can roll up into better parent-order performance. Powered by IEX Exchange's Signal, D-limit works to minimize adverse selection and deliver genuine spread capture, so you’re buying a stable bid—not a bid that ends up becoming the offer. D-limit is also designed to obtain pre-trade price improvement and is the only displayed exchange order type that enables users to achieve prices better than their initial resting price.

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FIX Details

3.5 Trillion

Notional value traded on IEX Exchange using D-Limit since its inception

75%

Proportion of IEX Exchange's lit trading volume using D-Limit

19%

Of Institutional brokers' D-Limit volume sees 2¢/share average Price Improvement*

75%

Price stability with D-limit vs 28% price stability on other exchanges**

Example Scenario

Quote is Stable. The Signal is "Off."

The NBBO is $10.10 x $10.14. D-Limit buy order is booked at $10.10. The quote is stable.

ISO Sell order with a $10.09 limit crosses the spread; trade occurs at the resting price of $10.10.

Quote is Crumbling. The Signal is "On."

The NBBO is $10.10 x $10.14. A D-Limit buy order with a limit of $10.10 is repriced to $10.09, 1 MPV below the unstable price ($10.10). The quote is unstable.

ISO Sell order with a $10.09 limit crosses the spread; trade occurs at the resting price of $10.09.

Example Scenario

D-Limit®

Discretionary Limit™

D-Limit works like a standard limit order but is the only exchange order type of its kind designed to protect orders from adverse selection.

Designed to improve displayed trading for market participants
Available for lit or dark trading

When IEX Exchange's unique Signal anticipates a price shift, D-Limit orders are automatically repriced to one Minimum Price Variation (MPV) outside the predicted unstable price level. This dynamic repricing mechanism is designed to protect against unfavorable price movements.

Real Results

D-Limit's impact.

New Functionality Improves D-Limit Hit Rates

D-Limit’s Cancel/Reprice functionality increased hit rates from 27% to 35%.

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Significant Savings

19% of Institutional brokers' D-Limit volume experiences an average price improvement of 2¢/share.

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Enhanced Stability with Signal V6

D-Limit is powered by the new Signal V6, designed to predict more price changes while maintaining the same accuracy.

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D-Limit in Action

Explore the mechanics of D-Limit through a detailed workflow diagram, illustrating the journey of an order from placement to execution. Then, see real-world scenarios that demonstrate D-Limit's dynamic response in varying market conditions.

D-Limit®

Workflow

This diagram details a base case messaging flow for a client sending a D-Limit order to IEX Exchange, the Signal (i.e., Crumbling Quote Indicator or CQI) triggering, repricing of the order, and finally a client cancellation of the order.

Cancel/Reprice Functionality

D-Limit now offers a Cancel/Reprice functionality, addressing Members' needs for better order management without consuming the restatement message. Members who opt-in to this functionality can configure D-Limit orders for automatic action 10 milliseconds post-Signal fire, enhancing price discovery and liquidity on IEX Exchange.

Resources

More information on D-limit.

Pricing

Starting September 2023, displayed adding volume on IEX Exchange earns a 4 mil rebate, with $0.0010/share charged for removing liquidity.

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Signal V6

D-Limit is powered by the new Signal V6, designed to predict more price changes while maintaining the same accuracy.

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Restatement Messages

When D-Limit orders are restated, users receive a restatement message, containing the price to which D-Limit orders were moved.

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Insights

The Latest on D-Limit

Article

IEX: Now a Top-Three Displayed Venue and Still First In Performance

A closer look at how our displayed trading is reaching new levels of growth.

Article

A 28-Mil Head Start

D-Limit’s unique features allow brokers to achieve an average of 28 mils of pre-trade price improvement per share, compared to 0 at all other exchanges.

Article

How is 4 > 30+?

IEX Exchange’s rebate is only 4 mils compared to an average of 33 mils on large maker-taker exchange exchanges (at the top tier). But performance-sensitive clients know that rebates are only part of the story. ‍

Article

Bringing the Power of Signal V6 to D-Limit

Displayed trading on IEX Exchange just keeps getting better.

Article

D-Limit Hit Rates Are Better Than Ever

Early adopters of the optional new D-Limit functionality are already seeing significant hit rate improvements.

Article

New D-Limit Functionality, New D-Limit Optionality

The same order protection, now designed for improved fill rates.

Podcast

Launching a New Institutional Equities Broker with Dan Aisen and Allison Bishop of Proof Trading

On this episode of Boxes and Lines, Ronan and JR chat with Daniel Aisen and Allison Bishop, founders of Proof Trading, a new institutional equities execution platform launched in 2021. They are also former IEXers! They talk about algorithmic trading, hot topics in market structure, and Proof’s unique approach to radical transparency. Recorded September 20, 2022.

Article

Performance Files: How to Maximize Price Improvement Using IEX Exchange's D-Limit Order Type

Part three on how our functionality delivers strong performance for investors.

Article

Performance Files: How IEX Delivers Price Improvement on IOCs with Hidden Liquidity

Part two of three on how our functionality delivers strong performance for investors

Article

Losing Transparency in America's Stock Markets: How to Bring More Trading into the Light

Preserving the public square and turning up the lights.

Article

D-Limit: One Year In

12 months later, our new order type remains ahead of the pack.

Article

To D-Limit and Beyond: Impact on IEX Exchange and the Broader Market

How D-Limit improves competition and promotes public price discovery.

* "Institutional Brokers” defined as Full-Service and Agency broker-dealers, based on IEX classifications on a best-efforts basis by Member firms’ trading sessions.
** Stable volume is defined as volume after which there was not an NBBO change in the 2ms following a trade. Stability comparisons made on volume taking place at the NBBO.