WYNN Wynn Resorts Ltd

By Alexander Osipovich 

IEX Group Inc., made famous by Michael Lewis's "Flash Boys," has hired a Wall Street veteran to bolster its efforts to convince companies to ditch the New York Stock Exchange and Nasdaq Inc. and list on the upstart exchange.

Sara Furber, who was previously a managing director at Morgan Stanley, has joined IEX as its head of listings, the exchange said Monday. She reports to IEX chief executive Brad Katsuyama.

IEX aims to start listing companies in 2017. The exchange, which designed its fee structure and technology to thwart aggressive high-frequency trading strategies, is leveraging its image as an investor-friendly marketplace to attract listings -- a lucrative business for NYSE and Nasdaq.

At least 10 companies, including some members of the S&P 500, have expressed interest in switching to IEX since the new exchange began soliciting listings earlier this year, according to a person familiar with the situation.

One of those is Wynn Resorts Ltd., the Nevada-based hotel and casino developer. Its billionaire chairman and chief executive Steve Wynn is an investor in IEX and a vocal supporter of its campaign against high-frequency traders.

"High-frequency traders taking advantage of real investors can't be good for our company or any publicly traded company," Mr. Wynn said in a statement emailed to The Wall Street Journal.

"I would consider listing our company with IEX as soon as they are able to do so," added Mr. Wynn, whose company is currently listed on Nasdaq.

Listings would provide a vital new stream of revenues for IEX, which currently has under 2% of market share in U.S. stocks trading. IEX has only been operating as a full-fledged stock exchange since August, after winning approval from the Securities and Exchange Commission in June.

NYSE and Nasdaq have traditionally been the go-to destination for high-profile corporate listings. Firms that have initial public offerings on NYSE often celebrate by ringing the opening bell on the exchange's historic trading floor in lower Manhattan. Nasdaq, meanwhile, developed a reputation as the favored exchange for technology companies going public.

The parent company of NYSE, Intercontinental Exchange Inc., earned $405 million from its listings business last year, while Nasdaq Inc.'s listings-related revenues were $264 million.

The other major operator of U.S. stock exchanges, Bats Global Markets Inc., also runs a listings business but focuses on exchange-traded funds rather than corporate issuers.

Ms. Furber was previously a member of Morgan Stanley's management committee and responsible for digital innovation for the wealth management group, according to the IEX press release. She also served as the chief operating officer of both Morgan Stanley Wealth Management and the firm's investment management's long-only business.

Other Wall Street veterans are helping IEX attract issuers. In addition to Ms. Furber, IEX has hired two former managing directors of NYSE, Suzette Crivaro and John Longobardi, to develop its listings business.

Listing on IEX is a way "for companies to demonstrate alignment with their shareholders," Mr. Katsuyama said in the press release.

Write to Alexander Osipovich at alexander.osipovich@dowjones.com

(END) Dow Jones Newswires

November 14, 2016 17:51 ET (22:51 GMT)

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