[Federal Register Volume 90, Number 115 (Tuesday, June 17, 2025)]
[Notices]
[Pages 25694-25697]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-10975]
[[Page 25694]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103237; File No. SR-IEX-2025-10]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Adopt a
Free Trial Program for Real-Time Exchange Market Data Products
June 11, 2025.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on June 6, 2025, the Investors Exchange LLC (``IEX'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``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\ IEX is filing with the Securities and
Exchange Commission (``Commission'') a proposed rule change to modify
Rule 11.130(c) and the IEX Fee Schedule, pursuant to IEX Rules
15.110(a) and (c), to adopt a free trial program of up to 30 days for
real-time Exchange market data products. In addition, the Exchange
proposes to further modify its Fee Schedule by removing footnote 3 as
obsolete since the Exchange has already launched the market data
product referred to therein. Changes to the Fee Schedule pursuant to
this proposal are effective upon filing.\6\
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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)(ii).
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The text of the proposed rule change is available at the Exchange's
website at https://www.iexexchange.io/resources/regulation/rule-filings, at the principal office of the Exchange, and at the
Commission's Public Reference Room.
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 Market Data Fees section of its
Fee Schedule,\7\ and the rule text of Rule 11.130(c), to adopt a free
trial program for IEX real-time market data products for which monthly
fees are applicable, specifically TOPS and DEEP.\8\ As proposed, a one
time, free trial of up to 30-days of TOPS and/or DEEP would be
available to a first-time data recipient. A first-time data recipient
would be any entity or individual who has not previously received that
particular Exchange market data product in real-time. A first-time data
recipient would obtain the free trial directly from the Exchange or
indirectly through a distribution by any participating Data
Subscriber.\9\
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\7\ See IEX Fee Schedule, available at https://www.iexexchange.io/resources/trading/fee-schedule.
\8\ See IEX Rule 11.330(a)(1) and (2).
\9\ ``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. 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. See IEX Data Subscriber Agreement,
Section 1, available at https://www.iexexchange.io/resources/trading/market-data.
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The Exchange offers three proprietary market data products (``IEX
Market Data''): TOPS, an uncompressed data feed that provides
aggregated top of book quotations for all displayed orders resting on
the Order Book; DEEP, an uncompressed data feed that provides
aggregated depth of book quotations for all displayed orders resting on
the Order Book at each price level; and DEEP+, an uncompressed data
feed that provides order-by-order depth of book quotations for all
displayed orders resting on the Order Book at each price level.\10\
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\10\ See IEX Rule 11.330(a).
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As proposed, the Exchange would make the free trial available for
IEX's ``Real-Time'' market data products for which the Exchange
currently charges a monthly fee, specifically TOPS and DEEP.\11\ As
specified in the Fee Schedule, ``Real-Time'' is defined as ``IEX market
data that is accessed, used, or distributed less than fifteen (15)
minutes after it was made available by the Exchange.'' \12\ The
Exchange currently charges a flat fee of $500/month for access to Real-
Time TOPS and $2,500/month for access to Real-Time DEEP, regardless of
whether the data is received directly from the Exchange or from a Data
Subscriber.
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\11\ For example, DEEP+ is a Real-Time IEX Market Data product,
but is currently offered free of charge and therefore not covered by
this proposed free trial program.
\12\ IEX Market Data may also be received on a delayed basis.
``Delayed'' market data is ``IEX market data that is accessed, used,
or distributed at least fifteen (15) minutes after it was made
available by the Exchange.'' The Exchange only directly offers Real-
Time IEX Market Data and not Delayed IEX Market Data, which may
instead be obtained from another Data Subscriber, such as a market
data provider. The Exchange does not currently charge fees for
Delayed IEX Market Data, though recipients of Delayed IEX Market
Data must still comply with any applicable requirements set forth in
IEX Market Data Policies, including but not limited to, the Display
Requirements and Access Control Requirements, as well as any other
applicable requirements that may be set forth in any additional
agreements entered into with the Exchange. See IEX Market Data
Policies, available at https://www.iexexchange.io/resources/trading/market-data.
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The free trial would not be applicable to the IEX data products
that are currently offered free of charge, i.e., DEEP+, DROP, HIST, and
Delayed IEX Market Data,\13\ since there is no fee for such products.
Similarly, the free trial would also not be applicable to internal
users of IEX Market Data at any Data Subscriber, any affiliate of any
Data Subscriber, and any non-affiliated entities that receive IEX
Market Data distributed by a Data Subscriber through Controlled
Distribution (i.e., ``Controlled Data Recipients'' \14\) since IEX does
not charge any fees for providing Real-Time TOPS or DEEP to such users.
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\13\ See supra note 7 and IEX Rule 11.330(a).
\14\ Pursuant to Section 1 of the IEX Data Subscriber Agreement,
a ``Controlled Data Recipient,'' is any person or entity who
receives IEX Market Data from a Data Subscriber via Controlled
Distribution and is not an internal user or affiliate of such Data
Subscriber. See supra note 9. ``Controlled Distribution'' means
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. See IEX Market Data Policies, Section 2, supra note 12.
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As proposed, a first-time recipient of Real-Time TOPS and/or DEEP
would not be charged fees for receiving that product in Real-Time for a
period of up to 30 days. If the person or entity would receive the free
trial from a Data Subscriber, the Data Subscriber must
[[Page 25695]]
obtain the Exchange's pre-approval to confirm that the proposed
recipient is in fact a first-time recipient of TOPS and/or DEEP as
applicable. The free trial would be available to any person or entity
that has not previously received the market data product in question in
Real-Time, either directly from the Exchange or from a Data Subscriber.
For example, if the person or entity has not previously received
TOPS or DEEP in Real-Time, such person or entity would be eligible for
a free trial of both TOPS and DEEP in Real-Time. If the person or
entity currently or previously received TOPS in Real-Time but not DEEP
in Real-Time, the person or entity would be eligible for a free trial
of DEEP in Real-Time.\15\ Similarly, if the person or entity currently
or previously received DEEP in Real-Time but not TOPS in Real-Time, the
person or entity would be eligible for a free trial of TOPS in Real-
Time. If the person or entity currently or previously received both
TOPS and DEEP in Real-Time, the person or entity would not be eligible
for a free trial of either. Current or previous receipt of DEEP+ in
Real-Time or on a Delayed basis, receipt of TOPS and/or DEEP on a
Delayed basis, or receipt of DROP and/or HIST would not disqualify a
person or entity from eligibility for a free trial of TOPS and/or DEEP
provided the conditions described above are satisfied.
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\15\ For example, a Data Subscriber that receives Real-Time TOPS
directly from the Exchange and distributes to it to other Data
Subscribers would be eligible to obtain a free trial of Real-Time
DEEP.
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The Exchange proposes to amend Rule 11.130(c) to provide that a
person or entity wishing to obtain a free trial from the Exchange must
complete a Data Subscriber Agreement and a Market Data Trial Addendum.
If they have no existing connectivity to the Exchange, they must
establish a connection and pay the monthly connectivity fee. The
Exchange would not provide a free trial period for connectivity. A Data
Subscriber with an existing subscription to Real-Time TOPS or DEEP may
provide a free trial of up to 30 days of either or both data feeds to a
first-time recipient of such data feed, subject to pre-approval from
IEX and execution by the Data Subscriber of a Market Data Trial
Addendum to their Data Subscriber Agreement with IEX.\16\ The Exchange
proposes that the trial period for a free trial obtained directly from
the Exchange would begin two business days following the full execution
of the IEX Data Subscriber Agreement and IEX Market Data Trial
Addendum. The trial period for free trials obtained through a Data
Subscriber would begin two business days after written approval by
IEX.\17\
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\16\ A first-time recipient receiving a free trial through a
Data Subscriber would not be permitted to redistribute that data
unless the recipient executed the IEX Data Subscriber Agreement and
IEX Market Data Trial Addendum agreeing to the standard terms and
conditions regarding market data usage. See supra notes 9, 12.
\17\ For example, if a person or entity that wishes to
participate in a free trial of TOPS is approved on June 16, that
person or entity will not be subject to any applicable fees through
July 18 (30 days after the June 16 start of the trial).
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As proposed, the free trial program will result in no changes to
the fees charged by the Exchange for IEX Market Data. At the end of the
free trial, the Exchange will charge the Data Subscriber for such
access in accordance with the IEX Data Subscriber Agreement, IEX Market
Data Policies, and Fee Schedule. A Data Subscriber distributing a free
trial is responsible for discontinuing access before the end of the
free trial, unless the trial participant executes a Data Subscriber
Agreement with IEX to receive and pay for the data feed.
In the event that a free trial participant chooses not to subscribe
to a particular IEX Market Data product at the conclusion of the trial
period, they will not be considered Data Subscribers and will not owe
any fees to the Exchange. Any free trial participant that does elect to
subscribe to that particular IEX Market Data product must inform the
Exchange, or Data Subscriber, as applicable, of its intent and complete
any necessary steps to license access to the IEX Market Data product
through the Exchange or the Data Subscriber.
The purpose of offering free trials is to enable the Exchange to
provide trials of Real-Time IEX Market Data to first-time recipients,
as well as to enable distributors to provide trials of their product to
first-time users. The Exchange believes that providing a one-time free
trial of up to 30 days to Real-Time IEX Market Data would enable
potential Data Subscribers to become familiar with the Exchange's
particular market data products and make informed decisions about
whether a particular Exchange market data product provides value to
their business models before expending resources to develop and
implement use of that market data product. The Exchange notes that
other exchanges have similar free trial programs.\18\
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\18\ See New York Stock Exchange LLC (``NYSE'') Proprietary
Market Data Fees Schedule, General; The Nasdaq Stock Market LLC
(``Nasdaq'') Equity 7 Pricing Schedule, Section 112(b)(1); Cboe BZX
Exchange, Inc. (``BZX Equities'') and Cboe BYX Exchange, Inc. (``BYX
Equities'') Market Data Fee Schedule and Market Data Policies.
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Non-Substantive Changes
The Exchange proposes removing footnote 3 from the table of Market
Data Fees in the Fee Schedule, where it appears next to the ``FREE''
designation for DEEP+ (Real-Time and Delayed) in the Fee column and
provides that ``[t]hese fees will be operative when the product is
launched. IEX will announce the launch date by Trader Alert at least 10
business days in advance of the product launch.''
On August 1, 2024 the Exchange announced via Trading Alert that it
would launch DEEP+ on or after November 1, 2024, subject to filing and
effectiveness of an SEC rule filing, and that the Exchange would not
charge any fees for receipt or use of DEEP+ for a promotional (i.e.,
initial incentive) period.\19\ In September 2024 the Exchange filed an
immediately effective rule filing with the Commission modifying the Fee
Schedule to add DEEP+ (Real-Time and Delayed) to the table of Market
Data Fees and to indicate that DEEP+ would be offered free of charge
for an initial incentive period. The rule filing also amended footnote
3 to state that fees for DEEP+ (i.e., a fee of free of charge) would be
operative when the product was launched, the date of which the Exchange
would announce via Trading Alert at least 10 business days before the
product launch, and applied footnote 3 to the table entries for the
DEEP+ products.\20\ On November 25, 2024, the Exchange published a
Trading Alert stating that DEEP+ would be available starting on
December 9, 2024.\21\ As stated in its prior rule filings and Trading
Alerts, the Exchange has provided Real-Time and Delayed DEEP+ free of
charge since its launch. Accordingly, the Exchange proposes to remove
footnote 3 from the Market Data Fees table for clarity because it is
obsolete in light of the December 2024 launch of DEEP+.
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\19\ See IEX Trading Alert #2024-21.
\20\ See Securities Exchange Act Release No. 101231(Oct. 2,
2024), 89 FR 81608 (Oct. 8, 2024) (SR-IEX-2024-20).
\21\ See IEX Trading Alert #2024-037.
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In addition, the Exchange proposes to amend the rule text of Rule
11.130(c) by adding a reference to the Market Data Trial Addendum, as
described above, and adding the word ``Subscriber'' to the description
of the IEX Data Subscriber Agreement that appears in the second
sentence of the rule. These proposed changes are consistent with the
proposed free trial program described above and the title of the IEX
Data Subscriber Agreement. The Exchange believes these changes would
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promote clarity and consistency between Rule 11.130(c), the Fee
Schedule, the IEX Data Subscriber Agreement, and the IEX Market Data
Policies.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with the provisions of Section 6(b) \22\ of the Act in general and
furthers the objectives of Section 6(b)(4) \23\ 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 recipients of Exchange market data products. The Exchange
also believes that the proposed rule change promotes just and equitable
principles of trade, will not be unfairly discriminatory, and is
consistent with the objectives of Section 6(b)(5) \24\ of the Act. The
Exchange believes the proposed rule change is also consistent with Rule
603 of Regulation NMS,\25\ which provides that any national securities
exchange that distributes information with respect to quotations for or
transactions in an NMS stock do so on terms that are not unreasonably
discriminatory.
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\22\ 15 U.S.C. 78f(b).
\23\ 15 U.S.C. 78f(b)(4).
\24\ 15 U.S.C. 78f(b)(5).
\25\ See 17 CFR 242.603.
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The Exchange believes that the proposed rule change is consistent
with charging fees that are reasonable, fair, and equitable, and not
unfairly discriminatory because the proposed rule change does not
change the level of fees that the Exchange currently charges. In
addition, the Exchange believes that providing the option of a one time
free trial will enable potential Data Subscribers to become familiar
with the features and functionality of the Exchange's Real-Time market
data products for a limited time with no financial commitment.
The Exchange believes that the proposed rule change is equitable
and not unfairly discriminatory because the financial benefit of the
free trial is available to any person or entity interested in receiving
a particular Real-Time market data product for the first time. The
Exchange believes that providing time limited access to the Exchange's
Real-Time market data products to first-time recipients is equitable
because access to the financial benefit of the free trial is not a
function of, nor conditioned on, the use they plan to make of the
market data product.
In addition, the Exchange believes there is a meaningful
distinction between Data Subscribers who are receiving a particular
Exchange market data product for the first time and may benefit from a
period in which to set up, test, and gain hands-on experience with the
product, from Data Subscribers who are already receiving that same
Exchange market data product and deriving value from it. The Exchange
believes that limiting the free trial to Data Subscribers who have not
previously subscribed to a particular Exchange market data product is
equitable and not unfairly discriminatory because those who are current
or previous Data Subscribers of that product are already familiar with
it and have already had an opportunity to evaluate whether the market
data product will add value to their business model. The Exchange
further believes that providing a free trial would potentially reduce
administrative costs for Data Subscribers to subscribe to or distribute
a new data product and eliminate fees for a limited time before they
would be able to derive value from using or distributing the data
product.
In addition, the Exchange believes that the proposed rule change is
consistent with Section 11A of the Exchange Act in that it is designed
to facilitate the economically efficient execution of securities
transactions, fair competition among brokers and dealers, exchange
markets and markets other than exchange markets, and the practicability
of brokers executing investors' orders in the best market. As noted
above, the proposed free trial program for Real-Time market data
products is designed to expand access to IEX Market Data to a broad
range of market participants and thereby supports the economically
efficient execution of securities transactions on IEX.
As discussed in the Purpose section, other exchanges have similar
free trial programs.\26\ Thus, the Exchange does not believe that the
proposed rule change raises any new or novel issues not already
considered by the Commission. For the foregoing reasons, the Exchange
believes that the proposed rule change is consistent with charging fees
that are reasonable, fair, equitable, and not unfairly discriminatory.
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\26\ See supra note 18.
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Non-Substantive Changes
The Exchange believes that the proposed rule changes deleting
references to obsolete rule text from the Fee Schedule and revising the
reference to the IEX Data Subscriber Agreement in Rule 11.130(c) are
not unfairly discriminatory. The proposed changes do not change fees,
but rather clarify the Fee Schedule by removing obsolete text, and
conforming the rule text in Rule 11.130(c) to the Fee Schedule and IEX
Data Subscriber Agreement. The Exchange believes all readers of the Fee
Schedule and Rule 11.130(c) would benefit from the clarity and
precision that would result from the proposed changes, which would
contribute to reasonably ensuring that the fees described there are
clear and accurate. For the foregoing reasons, the Exchange believes
that the proposed changes to the Fee Schedule and Rule 11.130(c) are
not unfairly discriminatory.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on intramarket or intermarket 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. To the contrary,
the proposal is designed to enhance the Exchange's competitiveness by
providing free trials of its Real-Time market data products to first-
time recipients, incentivizing potentially increased use of IEX TOPS
and DEEP, and expanding access to IEX Market Data. Other exchanges are
free to lower their prices or provide a free trial program to better
compete with the Exchange's offering, subject to the Commission's rule
filing process.
Further, the Exchange believes that the proposed program does not
impose a burden on intramarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act because all
similarly situated market data users will be treated similarly in that
all first-time recipients of a particular market data product may avail
themselves one time of the free trial per eligible market data product.
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) \27\ of the Act.
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\27\ 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) \28\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\28\ 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
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-IEX-2025-10 on the subject line.
Paper Comments
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-2025-10. 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 (https://www.sec.gov/rules/sro.shtml). 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-2025-10 and should be
submitted on or before July 8, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\29\
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\29\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-10975 Filed 6-16-25; 8:45 am]
BILLING CODE 8011-01-P