- REUTERS/Eduardo Munoz
- There’s been an executive shake-up 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’s taking on the CFO role.
There’s been an executive shake-up at upstart stock exchange IEX as it continues to try to lure a listing from one of its rivals.
IEX has hired former Bank of America Merrill Lynch banker Dan Cummings as head of corporate advisory, which includes IEX’s listings business. He replaces Sara Furber, a former Morgan Stanley executive who’s taking on the CFO role.
According to a news release, IEX will leverage Cummings experience in capital markets, which spans over 100 IPOs, to build relationships.
“As a proven leader in equities, Dan further strengthens our capabilities at IEX and allows us to invest in serving corporates, which, like investors, have been underserved in this market,” IEX cofounder Ronan Ryan said in a statement.
The company, which had said it would have its listings business up and running in early 2018, has not been able to attract a company to list. That’s despite the firm giving firms big incentives to list shares on the venue.
IEX was willing to cover the listings cost of companies that 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 chief executive Steve Wynn resigned amid sexual-misconduct accusations, which 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 would 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 of daily exchange volume.
In addition, having a well-known company switch would represent an endorsement of IEX’s market model and help boost its visibility.