The past two weeks have seen brokerages in the US take steps to change aspects of their business as they aim to become more streamlined in their operations and remain in touch with their competitors. Interactive Brokers (IB) is one of the firms that is involved in the battle for pole position in the industry, and the company has made another move that will see its clients benefit more from their business with the broker.
IB to list Common Stock on Nasdaq
Interactive Brokers, one of the leading online trading platforms, has submitted a request to move its listing of the Common Stock to the Nasdaq Stock Market LLC from the Investors Exchange LLC. The company filed a Registration Statement through a Form8-A. The request was submitted to the United States Securities and Exchange Commission (SEC), the regulator who oversees the trading sector. The documents for the registration were filed to register Interactive Brokers’ Class A common stock according to Section 12(b) of the Securities Exchange Act of 1934.
The brokerage’s listing on Nasdaq is expected to go into effect beginning the opening of business on the 7th of October, 2019. According to Interactive Brokers, the registration places the Common Stock they are moving to Nasdaq under the category “Description of Capital Stock” in the firm’s Registration Statement on Form S-3. This statement was filed with the SEC on the 28th of July, 2017. The company will use the same form, but they will place an amendment that will say that the company’s Common Stock will be listed on Nasdaq using the symbol IBKR and this move is effective beginning Monday, the 7th of October, 2019.
Switch back to listing on Nasdaq
The latest request by Interactive Brokers to move their Common Stock to Nasdaq comes almost a year after the brokerage firm moved its listing to Investors Exchange LLC. The switch to Investors Exchange came as a result of the firm’s desire to make its exchange advanced and aligned to the best models in the industry at that point.
Speaking on the latest transfer of listing to Nasdaq, Thomas Peterffy, founder and chairman of Interactive Brokers, said that they switched to Investors Exchange last year because they believed that their business model gave them a better chance for execution prices for orders that are routed on the platform. They hoped that other listings would follow this, and this would lead to more people investing more in the firm’s shares. Investors Exchange failed to provide more listings, and fewer traders were engaging with their stock on Investors Exchange than on Nasdaq added Peterffy. Returning to Nasdaq will be the best decision for their shareholders, and hence, the brokerage is making its current move.