IEX Raises Threshold for Reduced Incremental Fee Tier 2

On September 30, 2026, Investors Exchange LLC filed a proposed rule change identified as SR-IEX-2026-40. The Securities and Exchange Commission published a notice on October 6, 2026, stating that the amendment to IEX's fee schedule is effective upon filing and will be implemented on November 1, 2026. The change amends IEX Rule 15.110(a) and (c) to modify the criteria for the reduced Incremental Fee Tier 2.

The amendment raises the volume threshold that members must exceed to qualify for the reduced fee of $0.0001 per share from 15,000,000 to 20,000,000 Incremental Fee eligible ADV, an increase of 5,000,000 shares. Members that qualified for one of IEX's two highest displayed liquidity adding rebate tiers (Tier 8 or Tier 9) in the prior month retain the lower 15,000,000-share threshold.

Under the existing structure, the base rate for non-displayed liquidity additions or removals is $0.0010 per share. Members meeting the new 20,000,000-share benchmark receive the $0.0001 reduced rate for applicable executions of non-displayed orders. If a member does not meet the threshold, the eligible volume is capped at the member's Baseline non-displayed ADV, with excess volume charged at the base rate. Members who have qualified for Tier 2 for at least three consecutive months may double the cap on eligible volume and face a reduced fee of $0.0004 for any remaining excess.

The fee schedule will be updated to replace references to the 15,000,000-share threshold with the new 20,000,000-share figure. The revised language will read: "A Member qualifies for the Incremental Fee (i.e., Incremental Fee Tier 2) in the current month if its Incremental Fee eligible ADV in the prior month exceeded its Baseline non-displayed ADV by at least 20,000,000 (or by at least 15,000,000 if the Member qualified for Displayed Liquidity Adding Rebate Tier 8 or Tier 9)."

The Commission's notice invites comments from interested parties on the proposed rule change. All comments must be submitted in accordance with standard SEC procedures.