2026-14978NoticeWallet

Exchange Lets Pegged Orders Trade Before Dawn

Published Date: 7/24/2026

Notice

Summary

Investors Exchange (IEX) is making it easier to trade by allowing special pegged orders and discretionary limit orders during pre-market and post-market hours. This change helps traders get more flexible and timely trades outside regular hours, potentially boosting market activity. The new rule took effect right after filing on July 10, 2026, so traders can start using it immediately.

Analyzed Economic Effects

6 provisions identified: 5 benefits, 1 costs, 0 mixed.

Pegged and D-Limit Orders Allowed Early/Late

If you trade stocks, IEX proposes that several pegged order types and the Discretionary Limit (D-Limit) order type may be entered and trade during the Pre-Market Session (8:00 a.m. ET–9:30 a.m. ET) and the Post-Market Session (4:00 p.m. ET–5:00 p.m. ET). The specific pegged orders named include Primary Peg, Midpoint Peg, Discretionary Peg (D-Peg), Offset Peg, Market Peg, and Fixed Midpoint Peg.

All Users Eligible to Use New Order Types

The Exchange states that all Users are eligible to use D-Limit and the specified pegged orders, so any User with access to IEX could enter these order types in the Pre-Market and Post-Market Sessions and potentially benefit if the added use brings more liquidity, price discovery, and execution opportunities.

Market-Maker and Buyback Pegs Excluded

IEX is not enabling the Market Maker Peg order type or the Corporate Discretionary Peg (C-Peg) order type to trade in the Pre-Market or Post-Market Sessions. The filing explains Market Maker Pegs relate to quote obligations that apply only during the Regular Market Session and C-Pegs relate to corporate buybacks that typically occur during the Regular Market Session to qualify for the safe harbor under Exchange Act Rule 10b-18.

Quote Instability Activation Set Each Session

IEX will initialize the Activation Value for each Quote Instability Rule at 0.5 at the start of each trading session (Pre-Market, Regular Market, and Post-Market), and update that value throughout each session using the same methodology as in the Regular Market Session. This makes the quote-instability protection operate separately in each session.

Members Must Disclose Extended-Hours Risks

Members who accept customer orders for execution in the Pre-Market and Post-Market Sessions must provide specific risk disclosures to those customers under IEX Rule 3.290 about the risks of trading in extended hours. These disclosures apply when customers' orders may be executed outside the Regular Market Session.

Implementation Notice Timing Requirement

IEX will announce the implementation date for these changes by Trading Alert at least ten days before implementation and within 90 days of the filing becoming effective. The Exchange filed the proposed rule change on July 10, 2026.

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Key Dates

Effective Date
Published Date
7/10/2026
7/24/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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