Key facts
- The SEC proposed rescinding Rules 611 and 610(e) of Regulation NMS.
- Rule 611 prohibits trade-throughs for national market system stocks.
- Rule 610(e) restricts locking and crossing quotations in national market system stocks.
- SEC Chairman Paul Atkins cited a desire to simplify market structure and reduce costs.
- The proposal aims to allow competition and innovation to shape market evolution.
- A 60-day public comment period will follow the proposal's publication.
The Securities and Exchange Commission has proposed amendments to rescind Rules 611 and 610(e) of Regulation NMS. These rules have governed trade-through prohibitions and restrictions on locking and crossing quotations for national market system (NMS) stocks for two decades.
SEC Chairman Paul Atkins stated that the proposal is intended to simplify market structure and reduce costs for market participants. He believes this will allow competition, innovation, and market forces to shape the continuing evolution of equity markets, addressing what he described as unintended consequences of Rule 611 that have hindered market growth.