Notice2025-13730
Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Make a Non-Substantive Change To Amend and Conform a Definition in the Exchange's Fee Schedule
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Published
July 22, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 138 (Tuesday, July 22, 2025)</title>
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[Federal Register Volume 90, Number 138 (Tuesday, July 22, 2025)]
[Notices]
[Pages 34561-34564]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-13730]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103489; File No. SR-IEX-2025-16]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Make a
Non-Substantive Change To Amend and Conform a Definition in the
Exchange's Fee Schedule
July 17, 2025.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on July 14, 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
and II below, which Items have been prepared by the self-regulatory
organization. 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\ 15 U.S.C. 78a.
\3\ 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 Securities
Exchange Act of 1934 (``Exchange Act'' or ``Act''),\4\ and Rule 19b-4
thereunder,\5\ the Exchange is filing with the Commission a proposed
rule change to make the definition of ``Data Subscriber'' in the Market
Data Fees section of the Exchange's Fee Schedule consistent with the
IEX Data Subscriber Agreement and the IEX Market Data Policies
(``Market Data Policies''). The Exchange has designated this proposal
as non-controversial under Section 19(b)(3)(A) of the Act \6\ and
provided the Commission with the notice required by Rule 19b-
4(f)(6)(iii) under the Act.\7\
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\4\ 15 U.S.C. 78s(b)(1).
\5\ 17 CFR 240.19b-4.
\6\ 15 U.S.C. 78s(b)(3)(A).
\7\ 17 CFR 240.19b-4(f)(6)(iii).
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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>
and at the principal office of the Exchange.
II. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
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 self-regulatory organization
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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is to make a non-
substantive, clarifying change to the definition of ``Data Subscriber''
in the Market Data Fees section of the Exchange's Fee Schedule \8\ to
be consistent with the definition of that term in the IEX Data
Subscriber Agreement and the Market Data Policies.
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\8\ See IEX Fee Schedule, available at <a href="https://www.iexexchange.io/resources/trading/fee-schedule">https://www.iexexchange.io/resources/trading/fee-schedule</a>.
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Currently the Exchange defines ``Data Subscriber'' in the Market
Data Fees section of the Exchange's Fee Schedule as follows:
any natural person or entity that receives Real-Time IEX market data
either directly from the Exchange or from another non-affiliated
Data Subscriber. A Data Subscriber must enter into a Data Subscriber
Agreement with IEX in order to receive Real-Time IEX market data. A
natural person or entity that receives Real-Time IEX market data
from an affiliated Data Subscriber is subject to the Data Subscriber
Agreement of such affiliated Data Subscriber.\9\
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\9\ See id. ``Real-Time IEX Market Data'' is ``IEX Market Data
that is accessed, used or distributed less than fifteen (15) minutes
after such IEX Market Data is made available by the IEX System.''
Market Data Policies, Section 1, available at <a href="https://www.iexexchange.io/resources/trading/market-data">https://www.iexexchange.io/resources/trading/market-data</a>.
On October 2, 2024, the Exchange announced via Trading Alert (the
``October 2024 Trading Alert'') that it would be making certain changes
to the IEX Data Subscriber Agreement, the IEX Market Data Policies, and
the IEX Fee Schedule on or after February 1, 2025, subject to filing
and effectiveness of an SEC rule filing.\10\ The changes
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announced included modifications to the definitions of Real-Time and
Delayed IEX Data so that the delay interval would be fifteen (15)
minutes instead of fifteen (15) milliseconds, consistent with the
practice at all other exchanges and the SIPs.\11\ Thereafter, in
January 2025 the Exchange filed an immediately effective rule filing
with the Commission modifying the definitions of Real-Time IEX and
Delayed IEX Data in the Fee Schedule.\12\
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\10\ See IEX Trading Alert #2024-030.
\11\ See, e.g., NYSE Comprehensive Market Data Policies, Section
7 (Delayed Data Policy), available at <a href="https://www.nyse.com/publicdocs/data/Policy-ComprehensivPackage_PDP.pdf">https://www.nyse.com/publicdocs/data/Policy-ComprehensivPackage_PDP.pdf</a>; Cboe Global
Markets North American Data Policies, Section 5 (Delayed Data),
available at <a href="https://cdn.batstrading.com/resources/membership/Market_Data_Policies.pdf">https://cdn.batstrading.com/resources/membership/Market_Data_Policies.pdf</a>; Nasdaq U.S. Equities and Options Data
Policies, Section 4 (Delayed Data), available at <a href="https://www.nasdaqtrader.com/content/AdministrationSupport/Policy/USEquitiesandOptionsDataPolicies.pdf">https://www.nasdaqtrader.com/content/AdministrationSupport/Policy/USEquitiesandOptionsDataPolicies.pdf</a>; Consolidated Tape Association
Delayed Market Data (Network A and Network B) Policy, available at
<a href="https://www.ctaplan.com/publicdocs/ctaplan/Policy_Delayed_Market_Data.pdf">https://www.ctaplan.com/publicdocs/ctaplan/Policy_Delayed_Market_Data.pdf</a>; and Unlisted Trading Privileges Data
Policies, available at <a href="https://utpplan.com/DOC/Datapolicies.pdf">https://utpplan.com/DOC/Datapolicies.pdf</a>.
\12\ See Securities Exchange Act Release No. 102295 (January 28,
2025), 90 FR 8821 (February 3, 2025) (SR-IEX-2025-01).
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Contemporaneously with the rule filing and as set forth in the
October 2024 Trading Alert, the Exchange also modified certain aspects
of the Market Data Policies and the Data Subscriber Agreement to add
new definitions applicable to the distribution of IEX Market Data by
Data Subscribers.\13\ Specifically, the Exchange modified the Market
Data Policies to appropriately differentiate between controlled and
uncontrolled distribution recipients. The modified Market Data Policies
define ``Controlled Distribution'' as ``distribution of IEX Market Data
by a Data Subscriber where such Data Subscriber controls both the
entitlement to and display of the IEX Market Data'' and define
``Uncontrolled Distribution'' as ``distribution of IEX Market Data by a
Data Subscriber where such Data Subscriber does not control both the
entitlement to and display of the IEX Market Data.'' \14\ The Exchange
also added a corresponding definition of ``Controlled Data Recipient''
to the Data Subscriber Agreement.\15\
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\13\ On October 11, 2024, IEX filed a Form 1 Amendment with the
Commission that included the Data Subscriber Agreement that became
effective on February 1, 2025. <a href="https://www.sec.gov/Archives/edgar/vprr/2400/24003476.pdf">https://www.sec.gov/Archives/edgar/vprr/2400/24003476.pdf</a>.
\14\ See IEX Market Data Policies, supra note 9.
\15\ `` `Controlled Data Recipient' means any Person who (i)
receives IEX Market Data from a Data Subscriber via Controlled
Distribution, and (ii) is not a Data User or Affiliate of such Data
Subscriber.'' IEX Data Subscriber Agreement, Section 1, available at
<a href="https://www.iexexchange.io/resources/trading/documents">https://www.iexexchange.io/resources/trading/documents</a>.
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In connection with these changes, the Exchange modified the Market
Data Policies to specify the circumstances in which recipients of Real-
Time IEX Market Data obtained through Data Subscribers would be
required to sign the Data Subscriber Agreement or the IEX Controlled
Data Recipient Agreement.\16\ Specifically, the amended Market Data
Policies provide that ``recipients of Real-Time IEX Market Data via
Controlled Distribution who are not Data Users of the Data Subscriber
providing such Real-Time IEX Market Data are required to complete, sign
and deliver to the Data Subscriber providing such Real-Time IEX Market
Data the IEX Controlled Data Recipient Agreement or equivalent
agreement . . . Once the IEX Controlled Data Recipient Agreement or
equivalent agreement is signed by both Data Subscriber and the
Controlled Data Recipient, IEX considers such Controlled Data Recipient
to be authorized to receive IEX Market Data.'' The Exchange does not
require Controlled Data Recipients to enter into the Data Subscriber
Agreement with the Exchange. Instead, such recipients are required to
enter into an IEX Controlled Data Recipient Agreement with the Data
Subscriber, or an equivalent agreement, as specified in Section
2(2)(ii) of the Market Data Policies. In contrast, a person or entity
wishing to receive IEX Real-Time Market Data from a Data Subscriber who
does not control the entitlement to and display of the IEX Market Data
(i.e., uncontrolled distribution) would be required to execute the Data
Subscriber Agreement with the Exchange.
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\16\ The IEX Controlled Data Recipient Agreement is available at
<a href="https://www.iexexchange.io/resources/trading/documents">https://www.iexexchange.io/resources/trading/documents</a>.
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In addition to the policy changes described above, in January 2025
the Exchange also modified the definition of ``Data Subscriber'' in the
Data Subscriber Agreement as follows:
`Data Subscriber' means the undersigned, or as context requires
any other Person that receives IEX Market Data, either directly from
IEX or from another Data Subscriber, and is required to sign an IEX
Data Subscriber Agreement pursuant to the IEX Market Data Policies.
Data Subscriber does not include any Service Facilitator.\17\
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\17\ IEX Data Subscriber Agreement, Section 1, supra note 15.
This revised definition expressly incorporates the Market Data
Policies and by extension, the above-described distinctions set forth
in the Market Data Policies between recipients who receive IEX Market
Data through ``Controlled Distribution'' versus ``Uncontrolled
Distribution.''
The current Data Subscriber definition in the Fee Schedule does not
refer to the Market Data Policies or the fact that Controlled Data
Recipients are not required to enter into the Data Subscriber
Agreement. Accordingly, the current definition of ``Data Subscriber''
in the Market Data Fees section of the Fee Schedule is incomplete and
could create confusion or be misinterpreted as requiring a Controlled
Data Recipient, who receives IEX Market Data from a non-affiliated Data
Subscriber where such Data Subscriber controls both the entitlement to
and display of the IEX Market Data, to enter into a Data Subscriber
Agreement in order to receive the data.
Accordingly, the Exchange proposes to modify the Market Data Fees
section of the Fee Schedule to revise the definition of Data Subscriber
to specifically include recipients of Real-Time IEX Market Data who
receive it via uncontrolled distribution from a non-affiliated Data
Subscriber who does not control both the entitlement to and the display
of the IEX Market Data. Accordingly, the Exchange proposes to update
and clarify the existing definition of ``Data Subscriber'' in the Fee
Schedule so that it reads as follows (adding the underlined language):
``Data Subscriber'' means any natural person or entity that
receives Real-Time IEX market data either directly from the Exchange
or from another non-affiliated Data Subscriber via uncontrolled
distribution where such non-affiliated Data Subscriber does not
control both the entitlement to and display of the Real-Time IEX
Market Data by the Data Subscriber. A Data Subscriber must enter
into a Data Subscriber Agreement with IEX in order to receive Real-
Time IEX market data. A natural person or entity that receives Real-
Time IEX market data from an affiliated Data Subscriber is subject
to the Data Subscriber Agreement of such affiliated Data Subscriber.
This proposed change would align the definition of Data Subscriber
in the Fee Schedule with the Data Subscriber Agreement and Market Data
Policies, and thereby promote clarity and consistency between the Fee
Schedule, the Data Subscriber Agreement, and the Market Data Policies.
Apart from this additional clarifying language, the Exchange is not
proposing any other change to the definition of Data Subscriber in the
Fee Schedule, nor is the Exchange proposing to make any changes to the
pricing or definition of any IEX Market Data as set forth in the Fee
Schedule.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with
[[Page 34563]]
the provisions of Section 6(b) \18\ of the Act in general and furthers
the objectives of Section 6(b)(5) \19\ of the Act, in particular, in
that it is designed to prevent fraudulent and manipulative acts and
practices, promote just and equitable principles of trade, remove
impediments to and perfect the mechanism of a free and open market and
a national market system, and in general to protect investors and the
public interest.
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\18\ 15 U.S.C. 78f(b).
\19\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed rule change modifying the
definition of ``Data Subscriber'' in the Fee Schedule is consistent
with the requirements above. Specifically, the Exchange believes the
proposed change is designed to reduce any potential confusion regarding
the definition of ``Data Subscriber'' in the Fee Schedule with the way
that term is defined in the Data Subscriber Agreement and the Market
Data Policies, thereby protecting investors and the public interest by
providing more clarity and consistency with respect to that defined
term, and would contribute to reasonably ensuring that the contractual
obligations of Data Subscribers, Uncontrolled Data Recipients, and
Controlled Data Recipients described in the Fee Schedule are clear,
accurate, and consistent with the Data Subscriber Agreement and the
Market Data Policies.
Additionally, the Exchange believes that the clarity this rule
change will provide will remove impediments to and perfect the
mechanism of a free and open market and a national market system. The
Exchange believes that it is reasonable to add the additional text
describing Uncontrolled Data Recipients to the definition of ``Data
Subscriber'' because, as discussed in the Purpose section above, the
current definition of ``Data Subscriber'' in the Fee Schedule does not
refer to the fact that Controlled Data Recipients, who receive IEX
Market Data from a non-affiliated Data Subscriber who controls both the
entitlement to and display of the IEX Market Data, are not required to
enter into the Data Subscriber Agreement and could create confusion or
be misinterpreted as requiring a Controlled Data Recipient to enter
into a Data Subscriber Agreement in order to receive IEX Market Data.
Thus, the Exchange does not believe that this proposal raises any new
or novel issues that have not already been considered by the
Commission.
B. Self-Regulatory Organization's Statement on Burden on Competition
In accordance with Section 6(b)(8) of the Act,\20\ the Exchange
believes that the proposed rule change will not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. The proposed rule change is not designed to
address any competitive issues but rather is designed to enhance the
clarity of the Fee Schedule and alleviate possible confusion that may
arise from a definition of ``Data Subscriber'' in the Fee Schedule that
is incomplete and inconsistent with the definition set forth in the
Data Subscriber Agreement and Market Data Policies.
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\20\ 15 U.S.C. 78f(b)(8).
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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
Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \21\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\22\
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\21\ 15 U.S.C. 78s(b)(3)(A)(iii).
\22\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \23\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \24\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay so that
the proposal may become operative immediately upon filing. According to
the Exchange, waiver of the operative delay will allow to Exchange to
immediately align the definition of ``Data Subscriber'' in the Fee
Schedule with how that term is defined in the Data Subscriber Agreement
and the Market Data Policies, thereby providing more clarity and
consistency. The Commission believes that the proposed rule change
raises no new or novel issues and that waiver of the operative delay is
consistent with the protection of investors and the public interest.
Therefore, the Commission hereby waives the operative delay and
designates the proposal operative upon filing.\25\
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\23\ 17 CFR 240.19b-4(f)(6).
\24\ 17 CFR 240.19b-4(f)(6)(iii).
\25\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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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) \26\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\26\ 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#443631282169272b2929212a3037043721276a232b32"><span class="__cf_email__" data-cfemail="3d4f485158105e5250505853494e7d4e585e135a524b">[email protected]</span></a>. Please include
file number SR-IEX-2025-16 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-2025-16. 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 filing will be available for inspection and
copying
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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-2025-16 and should be submitted on or
before August 12, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\27\
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\27\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-13730 Filed 7-21-25; 8:45 am]
BILLING CODE 8011-01-P
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