Notice2025-20540
Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Rule 11.180, Units of Trading, To Conform to Rule 600 of Regulation NMS
Primary source
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Published
November 21, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 223 (Friday, November 21, 2025)</title>
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[Federal Register Volume 90, Number 223 (Friday, November 21, 2025)]
[Notices]
[Pages 52722-52724]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-20540]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104194; File No. SR-IEX-2025-28]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend the
Exchange's Rule 11.180, Units of Trading, To Conform to Rule 600 of
Regulation NMS
November 18, 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 September 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 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 Act,\4\
and Rule 19b-4 thereunder,\5\ the Exchange is filing with the
Commission a proposed rule change to amend IEX Rule 11.180, Units of
Trading, to conform with a recent amendment to the definition of
``round lot'' under Rule 600 of Regulation NMS recently approved by the
Commission.\6\ The Exchange has designated this proposal as non-
controversial 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\ See Securities Exchange Act Release No. 101070 (September
18, 2024), 89 FR 81620 (October 8, 2024) (File No. S7-30-22) (``NMS
Amendments Final Rule'').
\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 Exchange proposes to amend IEX Rule 11.180, Units of Trading,
to conform with the definition of round lot under Rule 600 of the
Regulation NMS that is to be implemented in November 2025.\8\
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\8\ See NMS Amendments Final Rule, supra note 6, 89 FR at 81680.
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In 2020, the Commission adopted amendments to Regulation NMS to
modernize the NMS information provided within the national market
system for the benefit of market participants and to better achieve
Section 11A's goals of assuring ``the availability to brokers, dealers,
and investors of information with respect to quotations for and
transactions in securities that is prompt, accurate, reliable, and
fair'' (``MDIR'').\9\ These changes included an amendment to Rule 600
of Regulation NMS to include a definition of round lot that assigns
each NMS stock to a round lot size based on the stock's average closing
price. Prior to this change, a round lot was not defined in the Act or
Regulation NMS. The definition of a round lot was included in the rules
of each exchange, including IEX Rule 11.180, which typically defined a
round lot as 100 shares, but also allowed the exchange, or the primary
listing exchange for the security, discretion to define it
otherwise.\10\
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\9\ See Securities Exchange Act Release No. 90610 (December 9,
2020), 86 FR 18596 (April 9, 2021) (``MDIR Adopting Release'').
\10\ As noted in current IEX Rule 11.180, the Exchange then
conforms its definition of a round lot to the direction of the
primary listing market.
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In light of delays in the implementation of the MDIR, including the
definition of round lot, on September 18, 2024, the Commission, among
other things, accelerated the implementation of the round lot
definition. The Commission also revised the round lot definition as set
forth below.\11\ Rule 600(b)(93) of Regulation NMS, as adopted by the
MDIR and as amended in 2024,\12\ defines a round lot for NMS stocks
\13\ that have an average closing price on the primary listing exchange
during the prior Evaluation Period \14\ of: (1) $250.00 or less per
share as 100 shares; (2) $250.01 to $1,000.00 per share as 40 shares;
(3) $1,000.01 to $10,000.00 per share as 10 shares; and (4) $10,000.01
or more per share as 1 share. For any security that becomes an NMS
Stock during an operative period, as described in Rule 600(b)(93)(iv)
\15\ a round lot is 100 shares. Adjustments to the round lot size for a
security will occur on a semiannual basis and the calculation of the
average closing price on the primary listing exchange will be based on
a one month ``Evaluation Period.''
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\11\ See supra note 6.
\12\ Id.
\13\ ``NMS stock'' is defined under Regulation NMS as any NMS
security other than an option. 17 CFR 242.600(b)(65).
\14\ Rule 600(b)(93)(iii) of Regulation NMS defines the
Evaluation Period as (A) all trading days in March for the round lot
assigned on the first business day in May and (B) all trading days
in September for the round lot assigned on the first business day of
November during which the average closing price of an NMS stock on
the primary listing exchange shall be measured by the primary
listing exchange to determine the round lot for each NMS stock.
\15\ Pursuant to Rule 600(b)(93)(iv) of Regulation NMS the round
lot assigned under this section shall be operative on: (A) The first
business day of May for the March Evaluation Period and continue
through the last business day of October of the calendar year; and
(B) The first business day of November for the September Evaluation
Period and continue through the last business day of April of the
next calendar year.
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The revised definition of round lot is to be implemented on
November 3, 2025, the first business day of November 2025.\16\ The
Exchange now proposes to amend IEX Rule 11.180, Units of Trading, to
conform with the definition of round lot in Rule 600 of Regulation NMS.
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\16\ See supra note 8.
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IEX Rule 11.180(a) currently reads as follows:
One hundred (100) shares shall constitute a ``round lot'' or
``normal unit of trade,'' any amount less than 100 shares shall
constitute
[[Page 52723]]
an ``odd lot,'' and any amount greater than 100 shares that is not a
multiple of a round lot shall constitute a ``mixed lot.'' Certain
securities, as designated by their Listing Markets, have a normal
unit of trade of less than 100 shares, and so the Exchange shall
conform to the direction of the Listing Markets.
To comply with the round lot definition in Rule 600 of Regulation
NMS, the Exchange proposes to revise IEX Rule 11.180(a) to read as
follows:
A ``round lot'' or ``normal unit of trade'' for each NMS Stock
shall be the size assigned by the primary listing market pursuant to
Rule 600 of Regulation NMS under the Exchange Act. Any amount less
than a round lot shall constitute an ``odd lot,'' and any amount
greater than a round lot that is not a multiple of a round lot shall
constitute a ``mixed lot.''
Implementation Date
The proposed rule changes will be implemented on November 3, 2025,
the same date as the revised definition of round lot under Regulation
NMS is to be implemented.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\17\ in general, and furthers the
objectives of Section 6(b)(1),\18\ in particular, in that it enables
the Exchange to be so organized as to have the capacity to be able to
carry out the purposes of the Act and to comply, and to enforce
compliance by its exchange members and person associated with the
exchange members, with the provisions of the Act, the rules and
regulations thereunder, and the rules of the Exchange. The Exchange
also believes that the proposed rule change is consistent with Section
6(b)(5) \19\ of the Act in that it is designed to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in facilitating transactions in securities, and to
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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\17\ 15 U.S.C. 78f(b).
\18\ 15 U.S.C. 78f(b)(1).
\19\ 15 U.S.C. 78f(b)(5).
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As described in the Purpose section, the proposed changes to IEX
Rule 11.180 are being proposed solely to conform the Exchange's
definition of round lot with the definition of round lot found in Rule
600 of Regulation NMS that is to be implemented in November 2025.\20\
The proposed changes would reduce potential investor and market
participant confusion and therefore remove impediments to and perfect
the mechanism of a free and open market and a national market system by
ensuring that the Exchange's rules properly reflect the requirements of
Rule 600 of Regulation NMS.
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\20\ See supra note 8.
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Accordingly, based on the foregoing, the Exchange does not believe
that the proposed rule change raises any novel issues not already
considered by the Commission.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
The Exchange believes the proposed rule changes do not impose any
burden on intramarket or intermarket competition that is not necessary
or appropriate in furtherance of the purposes of the Act. The proposed
rule change to amend the definition of round lot in IEX Rule 11.180(a)
is not intended to address competitive issues but rather is concerned
solely with amending the Exchange's Rules to conform with the
definition of round lot under Rule 600 of Regulation NMS that is to be
implemented in November 2025.\21\
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\21\ See supra note 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
The Exchange has designated this rule filing as non-controversial
under Section 19(b)(3)(A) \22\ of the Act and Rule 19b-4(f)(6) \23\
thereunder. Because the 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) of the Act and Rule 19b-
4(f)(6) thereunder.
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\22\ 15 U.S.C. 78s(b)(3)(A).
\23\ 17 CFR 240.19b-4(f)(6).
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The proposed rule change amending the definition of round lot in
IEX Rule 11.180 to conform to Rule 600 of the Regulation NMS will be
implemented on November 3, 2025, the same date as the revised
definition of round lot under Regulation NMS is to be implemented, to
ensure the Exchange's rules properly reflect the requirements of Rule
600 of Regulation NMS for the benefit of investors and the investing
public.
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) \24\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\24\ 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#1361667f763e707c7e7e767d6760536076703d747c65"><span class="__cf_email__" data-cfemail="4f3d3a232a622c2022222a213b3c0f3c2a2c61282039">[email protected]</span></a>. Please include
file number SR-IEX-2025-28 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-2025-28. 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 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-2025-28 and should be submitted on
or before December 12, 2025.
[[Page 52724]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
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\25\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-20540 Filed 11-20-25; 8:45 am]
BILLING CODE 8011-01-P
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