The Securities and Exchange Commission in March designated June 18 as the date by which the financial regulator would determine "whether to grant or deny" the controversial application by Investors' Exchange LLC, or IEX.

Headed by Brad Katsuyama — a star of author Michael Lewis' 2014 best seller "Flash Boys," which sharply criticized high frequency trading —  IEX hopes to compete with the New York Stock Exchange, Nasdaq Stock Market, Bats and other national trading venues.

The SEC's staff recommended full approval of the IEX application, The Wall Street Journal reported Tuesday, citing unidentified people familiar with the matter. SEC commissioners generally, but not always, follow staff recommendations in voting on final decisions.

IEX spokesman Gerald Lam declined to comment. The SEC did not immediately respond to a message seeking comment.

IEX currently operates an alternative trading system, or so-called dark pool, which is chiefly used by sophisticated professional traders.