Notice2026-20708
Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Pursuant to IEX Rule 15.110(a) and (c) To Amend the IEX Equities Fee Schedule
Primary source
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Published
October 9, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 195 (Friday, October 9, 2026)</title>
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[Federal Register Volume 91, Number 195 (Friday, October 9, 2026)]
[Notices]
[Pages 64710-64713]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20708]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106603; File No. SR-IEX-2026-39]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Pursuant to
IEX Rule 15.110(a) and (c) To Amend the IEX Equities Fee Schedule
October 6, 2026.
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, 2026, 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) of the Act,\4\ and
Rule 19b-4 thereunder,\5\ the Exchange is filing with the Commission a
proposed rule change to amend the Exchange's equities fee schedule
applicable to Members \6\ (the ``IEX Equities Fee Schedule'') \7\
pursuant to IEX Rule 15.110(a) and (c) to modify some of the criteria
to qualify for displayed liquidity adding rebates, modify certain of
the rebate amounts, and introduce a new displayed liquidity adding
rebate tier. Changes to the IEX Equities Fee Schedule pursuant to this
proposal are effective upon filing,\8\ and will be operative on
November 1, 2026.
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\4\ 15 U.S.C. 78s(b)(1).
\5\ 17 CFR 240.19b-4.
\6\ See IEX Rule 1.160(s).
\7\ See IEX Equities Fee Schedule, available at <a href="https://www.iex.io/resources/trading/fee-schedule">https://www.iex.io/resources/trading/fee-schedule</a>.
\8\ 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>
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 modify the IEX Equities Fee Schedule,
pursuant to IEX Rule 15.110(a) and (c), to modify some of the criteria
to qualify for the Displayed Liquidity Adding Rebate Tiers,\9\ modify
certain of the rebate amounts, and introduce a ninth Displayed
Liquidity Adding Rebate Tier for executions priced at or above $1.00
per share.\10\ Specifically, IEX proposes to: (i) increase the volume
of displayed adding activity on the Exchange required to qualify for
five of the Displayed Liquidity Adding Rebate Tiers; (ii) remove Tier
7's alternative qualifying criteria (added at least 25,000,000 ADV of
displayed liquidity and traded at least 50,000,000 non-displayed ADV);
(iii) establish maximum levels of displayed adding activity for Tiers 7
and 8 of the Displayed Liquidity Adding Rebate tiers; (iv) modify the
rebate amounts payable under Tiers 7 and 8; and (v) introduce a ninth
Displayed Liquidity Adding Rebate Tier.
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\9\ See footnote 4 to the Transaction Fees, Base Rates table and
Fee Code Combinations and Associated Fees table of the IEX Equities
Fee Schedule, supra note 7.
\10\ Nothing in this rule filing affects trades below $1.00 per
share (``sub-dollar trades''), which will continue to receive a
rebate equal to 0.15% of the total dollar value of the execution
(``TDV'') for displayed liquidity adding executions. Sub-dollar
trades will continue to have no impact on any of the rebate or fee
tier calculations for trades with an execution price of $1.00 per
share or more.
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Displayed Liquidity Adding Rebate Tiers
IEX currently offers Members eight Displayed Liquidity Adding
Rebate Tiers based on the Member's trading or quoting activity in the
immediately preceding month.\11\ These rebates,
[[Page 64711]]
which apply equally to executions of Tape A, Tape B, and Tape C
securities, are as follows:
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\11\ IEX Equities Fee Schedule, supra note 7, Base Rates table
(Base Fee Code ML) and Fee Code Combinations and Associated Fees
table, footnote 4. Pursuant to Rule 610(d) of Regulation NMS, all
IEX Equities transaction fees and rebates are determinable at the
time of execution. Accordingly, all transaction fees and rebates
that depend on a Member's trading or quoting activity are based on
that activity in the immediately preceding month. See Securities
Exchange Act Release No. 104541 (January 5, 2026), 91 FR 737
(January 8, 2026) (SR-IEX-2025-39) (amending the Exchange's fee
schedule applicable to Members to comply with Rule 610(d) of
Regulation NMS).
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<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'') if the Member added less than
3,000,000 ADV \12\ of displayed liquidity.
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\12\ The IEX Equities 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, per day. ADV
is calculated on a monthly basis, based on trading activity in the
immediately preceding month, unless otherwise indicated in the Fee
Schedule. Routed shares executed away from IEX, and shares executed
in auctions and the Opening Process, are not included in the ADV
calculation. The Exchange also excludes from its calculation of ADV
any trading day on which the Exchange's system experiences a
disruption that lasts for more than 60 minutes during Regular Market
Hours and any day with a scheduled early market close. With prior
notice to the Exchange, a Member may aggregate its ADV with other
Members with which it is affiliated pursuant to Rule 12b-2 under the
Act. See IEX Equities Fee Schedule, supra note 7, Transaction Fees,
Definitions and Notes.
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<bullet> Tier 2: provides Member a rebate of $0.0010 per share for
all Added Displayed Liquidity if the Member traded at least 10,000,000
non-displayed ADV \13\ and less than 20,000,000 non-displayed ADV.
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\13\ ``Non-displayed ADV'' refers to executions with the
following Fee Code Combinations: MI, MIB, TI, TIB, TIY, TIYB, TIR,
TLW, TLWB, and MIA. See IEX Equities Fee Schedule, supra note 7,
Transaction Fees, Definitions.
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<bullet> Tier 3: provides Member a rebate of $0.0014 per share for
all Added Displayed Liquidity if the Member: (1) added at least
3,000,000 ADV of displayed liquidity and less than 10,000,000 ADV of
displayed liquidity; or (2) traded at least 20,000,000 non-displayed
ADV; or (3) had an NBBO Time \14\ of at least 50% in at least 250 ETPs.
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\14\ ``NBBO Time'' means the Member's Percent Time at NBB plus
the Member's Percent Time at NBO. ``Percent Time at NBB'' and
``Percent Time at NBO'' mean, respectively, the aggregate of the
percentage of time during Regular Market Hours in which a Member has
a displayed order of at least one round lot at the national best bid
(``NBB'') or the national best offer (``NBO''). When applied to
transaction fees or rebates, NBBO Time is calculated using the
Member's quoting activity in the immediately preceding month. For
tiers that include NBBO Time as a required criterion, the Exchange
determines on a daily basis the number of securities in which the
Member met the NBBO Time threshold for that day and, at the end of
the month, takes the average (rounded to the nearest whole number)
of those daily counts. See IEX Equities Fee Schedule, supra note 7,
Transaction Fees, Definitions and Notes.
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<bullet> Tier 4: provides Member a rebate of $0.0016 per share for
all Added Displayed Liquidity if the Member: (1) added at least
10,000,000 ADV of displayed liquidity and less than 15,000,000 ADV of
displayed liquidity; or (2) had an NBBO Time of at least 50% in at
least 750 ETPs.
<bullet> Tier 5: provides Member a rebate of $0.0018 per share for
all Added Displayed Liquidity if the Member: (1) added at least
15,000,000 ADV of displayed liquidity and less than 20,000,000 ADV of
displayed liquidity; or (2) traded at least 30,000,000 non-displayed
ADV.
<bullet> Tier 6: provides Member a rebate of $0.0020 per share for
all Added Displayed Liquidity if the Member: (1) added at least
20,000,000 ADV of displayed liquidity and less than 30,000,000 ADV of
displayed liquidity; or (2) traded at least 40,000,000 non-displayed
ADV.
<bullet> Tier 7: provides Member a rebate of $0.0022 per share for
all Added Displayed Liquidity if the Member: (1) added at least
30,000,000 ADV of displayed liquidity; or (2) added at least 25,000,000
ADV of displayed liquidity and traded at least 50,000,000 non-displayed
ADV.
<bullet> Tier 8: provides Member a rebate of $0.0023 per share for
all Added Displayed Liquidity if the Member added at least 40,000,000
ADV of displayed liquidity.
As set forth above, there are several ways a Member can qualify for
the Displayed Liquidity Adding Rebate Tiers 3, 4, 5, and 6, including
by exceeding threshold volumes of displayed adding ADV in the prior
month. IEX proposes to increase the displayed adding ADV thresholds
required to qualify for those specific rebate tiers.\15\ IEX also
proposes to modify the rebate amounts and qualification criteria
applicable to Tiers 7 and 8, and to introduce a new Tier 9, as set
forth below.
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\15\ Nothing in this filing changes the other qualification
criteria for these rebates. For example, a Member can still qualify
for Displayed Liquidity Adding Rebate Tier 3 if the Member had
traded at least 20,000,000 non-displayed ADV or had an NBBO Time of
at least 50% in at least 250 ETPs.
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Specifically, IEX proposes to make the following changes to (i) the
displayed adding ADV criteria to qualify for Displayed Liquidity Adding
Rebate Tiers 1, 3, 4, 5, 6, 7, and 8; (ii) the displayed adding ADV
criteria and rebate amounts for Tiers 7 and 8; and (iii) new proposed
Tier 9 in both the Base Rates table description of Fee Code ML and the
Displayed Liquidity Adding Rebates Tiers set forth in footnote 4 to the
Fee Code Combinations and Associated Fees table:
<bullet> Tier 1: increase the displayed liquidity adding ADV
maximum from less than 3,000,000 to less than 5,000,000 ADV in order to
qualify for the fee of ``FREE'' on displayed liquidity adding
executions.
<bullet> Tier 3: increase the displayed liquidity adding ADV
minimum from at least 3,000,000 to at least 5,000,000 ADV and the
maximum displayed liquidity adding from less than 10,000,000 ADV to
less than 15,000,000 ADV in order to qualify for the rebate of $0.0014
per share on displayed liquidity adding executions.
<bullet> Tier 4: increase the displayed liquidity adding ADV
minimum from at least 10,000,000 to at least 15,000,000 ADV and the
maximum displayed liquidity adding from less than 15,000,000 ADV to
less than 20,000,000 ADV in order to qualify for the rebate of $0.0016
per share on displayed liquidity adding executions.
<bullet> Tier 5: increase the displayed liquidity adding ADV
minimum from at least 15,000,000 to at least 20,000,000 ADV and the
maximum displayed liquidity adding from less than 20,000,000 ADV to
less than 25,000,000 ADV in order to qualify for the rebate of $0.0018
per share on displayed liquidity adding executions.
<bullet> Tier 6: increase the displayed liquidity adding ADV
minimum from at least 20,000,000 to at least 25,000,000 ADV in order to
qualify for the rebate of $0.0020 per share on displayed liquidity
adding executions. The current maximum displayed liquidity adding of
less than 30,000,000 ADV would remain unchanged.
<bullet> Tier 7: reduce the rebate amount from $0.0022 to $0.0021
and establish a maximum displayed liquidity adding of less than
40,000,000 ADV in order to qualify for the proposed rebate of $0.0021
per share on displayed liquidity adding executions. The current minimum
displayed liquidity adding of at least 30,000,000 ADV would remain
unchanged. The Exchange also proposes to further modify Tier 7 by
removing the alternative qualification criteria of adding at least
25,000,000 ADV of displayed liquidity and traded at least 50,000,000
non-displayed ADV.
<bullet> Tier 8: reduce the rebate amount from $0.0023 to $0.0022,
and establish a maximum displayed liquidity adding of less than
50,000,000 ADV in order to qualify for the proposed rebate of $0.0022
per share on displayed liquidity adding executions. The current minimum
displayed liquidity adding of at least 40,000,000 ADV would remain
unchanged.
<bullet> New Tier 9: a Member would be required to add at least
50,000,000 ADV
[[Page 64712]]
of displayed liquidity in order to qualify for the proposed rebate of
$0.0023 per share on displayed liquidity adding executions.
Accordingly, the Exchange proposes to amend the description of Base
Fee Code ML (``Add displayed liquidity'') in the Base Rates table to
revise, in pertinent part, the following criteria:
<bullet> ``(Member added less than 5,000,000 ADV of displayed
liquidity)'' with a fee of ``FREE'' in the ``Executions at or above
$1.00'' column.
<bullet> ``(Member: (1) added at least 5,000,000 ADV of displayed
liquidity and less than 15,000,000 ADV of displayed liquidity . . .)''
with a rebate of ``($0.0014)'' in the ``Executions at or above $1.00''
column.
<bullet> ``(Member: (1) added at least 15,000,000 ADV of displayed
liquidity and less than 20,000,000 ADV of displayed liquidity . . .)''
with a rebate of ``($0.0016)'' in the ``Executions at or above $1.00''
column.
<bullet> ``(Member: (1) added at least 20,000,000 ADV of displayed
liquidity and less than 25,000,000 ADV of displayed liquidity . . .)''
with a rebate of ``($0.0018)'' in the ``Executions at or above $1.00''
column.
<bullet> ``(Member: (1) added at least 25,000,000 ADV of displayed
liquidity . . .)'' with a rebate of ``($0.0020)'' in the ``Executions
at or above $1.00'' column.
<bullet> ``(Member added at least 30,000,000 ADV of displayed
liquidity and less than 40,000,000 ADV of displayed liquidity)'' with a
rebate of ``($0.0021)'' in the ``Executions at or above $1.00'' column.
<bullet> ``(Member added at least 40,000,000 ADV of displayed
liquidity and less than 50,000,000 ADV of displayed liquidity)'' with a
rebate of ``($0.0022)'' in the ``Executions at or above $1.00'' column.
<bullet> ``(Member added at least 50,000,000 ADV of displayed
liquidity)'' with a rebate of ``($0.0023)'' in the ``Executions at or
above $1.00'' column.
The Exchange also proposes to amend Footnote 4 (Displayed Liquidity
Adding Rebate Tiers (Applicable to Executions at or above $1 for Tape
A, B, or C Securities)), which applies to Base Fee Code ML and to Fee
Code Combinations ML, MLB, MLY, and MLYB, to reflect the modified
qualification criteria and rebates for Tiers 1, 3, 4, 5, 6, 7, and 8,
and the criteria and the applicable rebate for proposed Tier 9, as set
forth above.
IEX is making no other changes to the IEX Equities Fee Schedule. As
noted above, changes to the IEX Equities Fee Schedule pursuant to this
proposal are effective upon filing and will be operative on November 1,
2026.
2. Statutory Basis
IEX believes that the proposed rule change is consistent with the
provisions of Section 6(b) \16\ of the Act in general, and furthers the
objectives of Sections 6(b)(4) \17\ and 6(b)(5) \18\ 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, and is not designed to
permit unfair discrimination between customers, issuers, brokers, or
dealers. For the reasons set forth below, the Exchange believes that
the proposed rule change is reasonable, equitable, and not designed to
permit unfair discrimination.
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\16\ 15 U.S.C. 78f(b).
\17\ 15 U.S.C. 78f(b)(4).
\18\ 15 U.S.C. 78f(b)(5).
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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. Based
upon informal discussions with market participants, IEX believes that
Members and other market participants may be more incentivized to send
displayed orders to IEX if the proposed fee structure were adopted.
Accordingly, IEX has designed the proposed rebate changes to attract
and incentivize displayed orders while providing a fee structure that
is fair, equitable, and not designed to permit unfair discrimination
because the proposed changes will apply equally to all Members who
satisfy the criteria.
The Exchange believes that the proposed amended Displayed Liquidity
Adding Rebate Tiers and the proposed new Displayed Liquidity Adding
Rebate Tier 9 are reasonable because they are designed to incentivize
Members to add a meaningful volume of displayed liquidity on IEX by
paying a higher rebate to Members that added progressively more
displayed liquidity in the immediately preceding month. The proposed
modifications to the displayed adding ADV qualifying criteria for seven
of the Displayed Liquidity Adding Rebate Tiers, the proposed modified
rebates for Tiers 7 and 8, and the proposed Tier 9, are within the
range of rebates offered by competing exchanges, and thus the Exchange
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.
The Exchange also believes it is consistent with the Act to base
the criteria to qualify for the proposed amended tiers and proposed
Tier 9 on the Member's trading activity on IEX in the immediately
preceding month in order to comply with Rule 610(d) of Regulation NMS.
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 and fees are assessed on Members, these rebate and
fee tiers are not based on the type of Member entering the orders that
match, but rather on the Member's own trading activity on the Exchange.
Further, the proposed fee change is intended to encourage market
participants to bring increased order flow to the Exchange and
contribute to the public price discovery process, which benefits all
market participants.
[[Page 64713]]
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) \19\ of the Act.
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\19\ 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) \20\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\20\ 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#ee9c9b828bc38d8183838b809a9dae9d8b8dc0898198"><span class="__cf_email__" data-cfemail="e193948d84cc828e8c8c848f9592a1928482cf868e97">[email protected]</span></a>. Please include
file number SR-IEX-2026-39 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-2026-39. 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-2026-39 and should be submitted on
or before October 30, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
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\21\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-20708 Filed 10-8-26; 8:45 am]
BILLING CODE 8011-01-P
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