Notice2025-10972
Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Fee Schedule To Modify the Required Criteria for a Displayed Liquidity Adding Rebate Tier for Executions Priced At or Above $1.00 Per Share
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 17, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 115 (Tuesday, June 17, 2025)</title>
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[Federal Register Volume 90, Number 115 (Tuesday, June 17, 2025)]
[Notices]
[Pages 25663-25665]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-10972]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103233; File No. SR-IEX-2025-08]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the
Exchange's Fee Schedule To Modify the Required Criteria for a Displayed
Liquidity Adding Rebate Tier for Executions Priced At or Above $1.00
Per Share
June 11, 2025.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on May 30, 2025, the Investors Exchange LLC (``IEX'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the Exchange. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Pursuant to the provisions of Section 19(b)(1) under the Act,\3\
and Rule 19b-4 thereunder,\4\ the Exchange is filing with the
Commission a proposed rule change to amend the Exchange's fee schedule
applicable to Members \5\ (the ``Fee Schedule'' \6\) pursuant to IEX
Rule 15.110(a) and (c) to modify the required criteria for one of its
Displayed Liquidity Adding Rebate Tiers for executions priced at or
above $1.00 per share. Changes to the Fee Schedule pursuant to this
proposal are effective upon filing,\7\ and will be operative on June 1,
2025.
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\3\ 15 U.S.C. 78s(b)(1).
\4\ 17 CFR 240.19b-4.
\5\ See IEX Rule 1.160(s).
\6\ See Investors Exchange Fee Schedule, available at <a href="https://www.iexexchange.io/resources/trading/fee-schedule">https://www.iexexchange.io/resources/trading/fee-schedule</a>.
\7\ 15 U.S.C. 78s(b)(3)(A)(ii).
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The text of the proposed rule change is available at the Exchange's
website at <a href="https://www.iexexchange.io/resources/regulation/rule-filings">https://www.iexexchange.io/resources/regulation/rule-filings</a>, at the principal office of the Exchange, and at the
Commission's Public Reference Room.
[[Page 25664]]
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to modify its Fee Schedule, pursuant to IEX
Rule 15.110(a) and (c), to modify the required criteria for one of its
Displayed Liquidity Adding Rebate Tiers for executions priced at or
above $1.00 to introduce an alternative means of qualifying for the
rebate tier. Notably, IEX is not proposing to change the amounts of any
rebates or fees.
Displayed Liquidity Adding Rebate Tiers
As reflected in the Transaction Fees section of the Fee Schedule,
IEX currently offers Members the following seven Displayed Liquidity
Adding Rebate tiers:
<bullet> Tier 1: provides Member the Exchange's base fee of FREE
for all displayed liquidity adding executions priced at or above $1.00
per share (``Added Displayed Liquidity'') \8\ if the Member adds less
than 3,000,000 ADV \9\ of displayed liquidity in that month.
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\8\ Nothing in this rule filing affects trades below $1.00 per
share (``subdollar trades''). Any subdollar trade that adds
displayed liquidity does not impact the rebate tier calculations and
receives a rebate of 0.15% of the total dollar value of the
execution. See Securities Exchange Act Release No. 102086 (January
2, 2025), 90 FR 1586 (January 8, 2025) (SR-IEX-2024-30).
\9\ The Fee Schedule defines ``ADV'' as average daily volume
calculated as the number of shares added or removed (as applicable)
that execute at or above $1.00 per share, combined, per day,
calculated on a monthly basis, subject to certain exclusions.
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<bullet> Tier 2: provides Member a rebate of $0.0010 per share for
all Added Displayed Liquidity if the Member trades at least 5,000,000
non-displayed ADV and less than 10,000,000 non-displayed ADV.
<bullet> Tier 3: provides Member a rebate of $0.0014 per share for
all Added Displayed Liquidity if the Member either: adds at least
3,000,000 ADV of displayed liquidity and less than 10,000,000 ADV of
displayed liquidity; or trades at least 10,000,000 non-displayed ADV.
<bullet> Tier 4: provides Member a rebate of $0.0016 per share for
all Added Displayed Liquidity if the Member adds at least 10,000,000
ADV of displayed liquidity and less than 15,000,000 ADV of displayed
liquidity.
<bullet> Tier 5: provides Member a rebate of $0.0018 per share for
all Added Displayed Liquidity if the Member adds at least 15,000,000
ADV of displayed liquidity and less than 20,000,000 ADV of displayed
liquidity.
<bullet> Tier 6: provides Member a rebate of $0.0020 per share for
all Added Displayed Liquidity if the Member adds at least 20,000,000
ADV of displayed liquidity and less than 30,000,000 ADV of displayed
liquidity.
<bullet> Tier 7: provides Member a rebate of $0.0022 per share for
all Added Displayed Liquidity if the Member adds at least 30,000,000
ADV of displayed liquidity.
IEX is proposing to modify the required criteria for qualifying for
Displayed Liquidity Adding Rebate Tier 6 (``Tier 6''), so that Members
will have two ways in which they could qualify for Tier 6: (1) the
current method, in which a Member qualifies for the rebate tier by
adding at least 20,000,000 ADV of displayed liquidity and less than
30,000,000 ADV of displayed liquidity; or (2) the proposed new method,
in which a Member would qualify for the rebate tier by trading at least
20,000,000 non-displayed ADV, irrespective of their Added Displayed
Liquidity. In effect, this proposed additional means of qualifying for
Tier 6 makes that tier a higher volume version of Displayed Liquidity
Adding Rebate Tier 3, which allows Members to qualify for that tier
either: (1) by adding at least 3,000,000 and less than 10,000,000 ADV
of displayed liquidity or (2) by trading at least 10,000,000 non-
displayed ADV, irrespective of their Added Displayed Liquidity.
Accordingly, IEX proposes to update its Fee Schedule to make two
revisions to reflect the proposed changes to Tier 6. First, the
Exchange proposes to amend the Fee Schedule's Base Rates table to
update the description and fees associated with Base Fee Code ML (``Add
displayed liquidity''). As amended, the Base Rates table will continue
to list seven base rates for Fee Code ML, but the description of the
base rate paid for a Member that adds at least 20,000,000 ADV of
displayed liquidity and less than 30,000,000 ADV of displayed liquidity
will state that a Member also can qualify for that base rate by trading
at least 20,000,000 non-displayed ADV. Similarly, IEX proposes to
update the description of Tier 6 in Footnote 4 to the Transaction Fees
section. As proposed, Footnote 4 will be amended to reflect that a
Member can qualify for Tier 6 either by adding at least 20,000,000 ADV
of displayed liquidity and less than 30,000,000 ADV of displayed
liquidity, or by trading at least 20,000,000 non-displayed ADV.
IEX notes that this model of offering volume-based rebates is
consistent with the rebates offered by competitor exchanges.\10\
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\10\ See, e.g., Cboe BZX Inc. Fee Schedule (Effective May 19,
2025), available at <a href="https://www.cboe.com/us/equities/membership/fee_schedule/bzx/">https://www.cboe.com/us/equities/membership/fee_schedule/bzx/</a>; MEMX Equities Fee Schedule (Effective May 1,
2025), available at <a href="https://info.memxtrading.com/equities-trading-resources/us-equities-fee-schedule/">https://info.memxtrading.com/equities-trading-resources/us-equities-fee-schedule/</a>; Nasdaq Equity VII; New York
Stock Exchange Price List 2025 (as of April 1, 2025), available at
<a href="https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Price_List.pdf">https://www.nyse.com/publicdocs/nyse/markets/nyse/NYSE_Price_List.pdf</a>.
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2. Statutory Basis
IEX believes that the proposed rule change is consistent with the
provisions of Section 6(b) \11\ of the Act in general, and furthers the
objectives of Sections 6(b)(4) \12\ of the Act, in particular, in that
it is designed to provide for the equitable allocation of reasonable
dues, fees and other charges among its Members and other persons using
its facilities. The Exchange believes that the proposed fee change is
reasonable, fair and equitable, and non-discriminatory.
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\11\ 15 U.S.C. 78f.
\12\ 15 U.S.C. 78f(b)(4).
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The Exchange operates in a highly competitive market in which
market participants can readily direct order flow to competing venues
if they deem fee levels at a particular venue to be excessive. IEX has
concluded that, in the context of current regulatory requirements
governing access fees and rebates, it is able to more effectively
compete with other exchanges for order flow by offering Members an
additional means of qualifying for higher rebate incentives. Based upon
informal discussions with market participants, IEX believes that
Members and other market participants may be more willing to send
displayed orders to IEX if the proposed fee change is adopted.
Accordingly, IEX has designed the proposed change to Tier 6 to
allow Members an additional way to qualify for that particular
incentive rebate tier. As noted in the Purpose section, the proposed
changes to Tier 6 are an expansion of the current criteria to qualify
for Displayed Liquidity Adding
[[Page 25665]]
Rebate Tier 3, and thus raises no issues already considered by the
Commission.
With this proposed change, IEX's rebates are still designed to
attract and incentivize displayed orders as well as order flow seeking
to trade with such displayed orders. Moreover, increases in displayed
liquidity would contribute to the public price discovery process which
would benefit all market participants and protect investors and the
public interest.
As discussed above, the Exchange operates in a highly competitive
market in which market participants can readily direct order flow to
competing venues if they deem fee levels at a particular venue to be
excessive. Within that context, the proposed additional criteria for
qualifying for Tier 6 is designed to keep IEX's displayed trading
prices competitive with those of other exchanges. The proposed
additional criteria for qualifying for Tier 6 is comparable to the
criteria applied by competing exchanges, and thus IEX does not believe
that the proposal raises any new or novel issues not already considered
by the Commission in the context of other exchanges' fees.\13\
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\13\ See supra note 11.
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Finally, to the extent this proposed fee change is successful in
incentivizing the entry and execution of displayed orders on IEX, such
greater liquidity will benefit all market participants by increasing
price discovery and price formation as well as market quality and
execution opportunities. And, as discussed above, IEX does not believe
that any aspect of this proposal raises new or novel issues not already
considered by the Commission.
B. Self-Regulatory Organization's Statement on Burden on Competition
IEX does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange does not believe
that the proposed rule change will impose any burden on intermarket
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. The Exchange operates in a highly competitive
market in which market participants can readily favor competing venues
if fee schedules at other venues are viewed as more favorable.
Consequently, the Exchange believes that the degree to which IEX fees
could impose any burden on competition is extremely limited and does
not believe that such fees would burden competition between Members or
competing venues. Moreover, as noted in the Statutory Basis section,
the Exchange does not believe that the proposed changes raise any new
or novel issues not already considered by the Commission.
The Exchange does not believe that the proposed rule change will
impose any burden on intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because, while
different rebates are assessed on Members, these rebate tiers are not
based on the type of Member entering the orders that match, but rather
on the Member's own trading activity. Further, the proposed fee changes
continue to be intended to encourage market participants to bring
increased order flow to the Exchange, which benefits all market
participants.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) \14\ of the Act.
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\14\ 15 U.S.C. 78s(b)(3)(A)(ii).
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings under
Section 19(b)(2)(B) \15\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\15\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#93e1e6fff6bef0fcfefef6fde7e0d3e0f6f0bdf4fce5"><span class="__cf_email__" data-cfemail="344641585119575b5959515a4047744751571a535b42">[email protected]</span></a>. Please include
file number SR-IEX-2025-08 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-IEX-2025-08. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549, on official business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and copying at the principal office of the Exchange. Do not
include personal identifiable information in submissions; you should
submit only information that you wish to make available publicly. We
may redact in part or withhold entirely from publication submitted
material that is obscene or subject to copyright protection. All
submissions should refer to file number SR-IEX-2025-08 and should be
submitted on or before July 8, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-10972 Filed 6-16-25; 8:45 am]
BILLING CODE 8011-01-P
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