As stated in yesterday’s announcement to customers, Direct Edge pioneered its Enhanced Liquidity Provider program three years ago because we saw an opportunity to provide our customers with access to previously unavailable liquidity. Our customers who choose to use the program continue to see price and size improvement opportunities, better overall execution quality, and are best suited to decide when participation is right for them and their customers. We also recognize that the SEC has commenced an overall review of market structure in which certain order types are a component.
Accordingly, Direct Edge has suspended its plan to offer flash functionality (tentatively entitled the “Flare” order) similar to that previously introduced by NASDAQ and BATS, voluntarily withdrawing a related rule filing with the SEC. Direct Edge will maintain current ELP functionality so as to preserve current customer choice and flexibility. Direct Edge supports the SEC’s broad approach to the myriad issues that have been the focus of recent attention and will, of course, abide by any SEC decisions regarding this or any other matter.
