CalSTRS is supporting IEX Group’s attempt to get SEC approval as a stock exchange.
In a comment letter released March 11 by the Securities and Exchange Commission, Anne Sheehan, director of corporate governance at the $179.4 billion pension fund, wrote that an additional exchange would increase market liquidity and cut trading costs through more competitive pricing.
“We believe IEX can provide a market alternative for investors who wish to utilize their trading platform,” Ms. Sheehan wrote. “With a public equity portfolio valued at over $100 billion, we have a vested interest to ensure the markets in which we operate function as efficiently as possible.”
California State Teachers’ Retirement System, West Sacramento, joins the $125 billion Texas Teacher Retirement System, Austin; Norges Bank Investment Management, which manages Norway’s 7.475 trillion Norwegian kroner ($880.3 billion) Government Pension Fund Global, Oslo; and the €183.3 billion ($201.5 billion) Dutch pension fund manager PGGM in publicly endorsing IEX’s application.
Citadel Group, Nasdaq, Intercontinental Exchange and BATS Global Markets are among those that have filed comment letters opposing the application.
Dark-pool operator IEX is seeking SEC approval to operate as a registered U.S. exchange. The SEC is scheduled to decide on IEX’s application by March 21.