IEX Group has completed a $75 million round of funding led by boutique venture capital firm Spark Capital, said IEX spokesman Gerald Lam in an e-mail.
Other backers include billionaire Steve Wynn and Bain Capital Ventures as the dark-pool operator continues its efforts to become a registered stock exchange.
Alex Finkelstein, general partner at Spark Capital, joins IEX Group's board of directors as a result of the financing.
Since the first quarter this year, IEX has tripled its daily trading volume, and in recent weeks, participant volume has exceeded 100 million shares per day, a news release said. IEX is the first equity trading venue seeded by a consortium of buy-side investors, including mutual funds, hedge funds and family offices. It was thrust into the limelight after its inclusion in Michael Lewis' book, “Flash Boys.”
“The market is looking for someone that is transparent,” Mr. Finkelstein said in a telephone interview last week. Institutional investors “want a company like IEX to happen,” he said. “They want the market to fix the problem, not regulation.”
Mr. Finkelstein said he first made contact with IEX by cold-calling the company's president and CEO, Brad Katsuyama, in April.
Mr. Wynn, the chairman and founder of Wynn Resorts, expressed his support for Mr. Katsuyama's trading platform at the Milken Institute Global Conference in Beverly Hills, Calif., earlier this year.
Bloomberg contributed to this story.