Stock upstart IEX is facing another regulatory delay

The “flash boys” are facing another delay.

IEX, the trading upstart itching to take on high-spee⭕d traders, is likely to have its application to become a full-fledged stock exchange delayed for a second time, according to a source.

The ⭕Securities and Exchange is expected to push back its decision until June 21 over the objections of IEX. The Wall Street regulator was supposed to take action by Monday.

Exchange rivals such as NYSE and Nasdaq, as well as high-frequency trading firms like Citadel, oppose IEX’s bid to become a registered stock exchange and have sought t🧜o delay its application indefinitely.

The trading platform, run by CEO Brad Katsuyama of “Flash Boys” fame, has ruffled feathers because of a 350 microsecond delay designed to keep out ultra-fast traders. Critics argue that IEX’s “speed ♊bump” runs afoul of SEC rules and could make it harder for investors to get the best price.

Rumors started swirling Thursday that the SEC was going to deny IEX’s application after IEX abruptly canceled a stock-market simulation a day earlier. IEX dropped ♛the test when it became clear that regulators would seek another delay, said a source familiar with the company.

IEX, which is now a “dark pool,” or a less regulated private trading platform, has been waiting since September 2015 for the SEC to take actionꦰ on its application.

In a Feb. 11 call with SEC officials and executives at other exchanges, John Ramsay, IEX’s chief market policy and regulatory🃏 officeꦚr, expressed impatience with regulators and said IEX would not agree to another extension.

“The SEC needsꦑ to rule on this,” Ramsey said, according to a source who participated in the call. “We made our case. ⛄There is no reason to extend. We do not even intend to grant an extension.”

The situation changed later in the February, when IEX revealed that it would subject all orders to the “speed bump” — scrapping a controversial plan that would have favored its in-house brokerage clients by allowing them to b๊ypass the delay.

Rather than ask IEX for a voluntary delay, the SEC is expected to turn to a little known procedural mane❀uvওer to buy more time, called a proceeding of disapproval, , which first reported the delay.