SEC proposes scrapping key Regulation NMS trading rules

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SEC proposes NMS rule changes

Highlights

SEC proposes rescinding Rule 611's trade-through prohibition and Rule 610(e)'s limits on locking and crossing quotations for national market system stocks as of June 11, 2026.
Chairman Paul S. Atkins cites two decades of Rule 611's unintended consequences, with the proposal aiming to simplify market structure, reduce costs, and boost innovation.
The SEC opens a 60-day public comment period upon Federal Register publication, potentially signaling a major shift in U.S. equity market regulation.

Proposal targets trade-through and quotation limits

As reported by the Securities and Exchange Commission, the agency on June 11, 2026 proposes amendments to rescind Rules 611 and 610(e) of Regulation NMS, two provisions that govern trade-through protections and restrictions on locking and crossing quotations in national market system stocks.

Rule 611 contains the trade-through prohibition for national market system stocks, while Rule 610(e) sets limits on locking and crossing quotations in those securities. The proposal also rescinds related defined terms in Rule 600 of Regulation NMS and makes conforming changes to other connected provisions.

SEC Chairman Paul S. Atkins says the commission is reviewing what he describes as unintended consequences from two decades of Rule 611 that have hindered, rather than enhanced, the long-term growth of U.S. markets. He says the proposal is intended to simplify market structure, reduce costs for market participants, and allow competition, innovation and other market forces to shape the continued evolution of equity markets.

Comment period opens for market participants

The SEC says the public comment period remains open for 60 days after the proposing release is published in the Federal Register, giving exchanges, brokers, investors and other market participants time to respond to the proposed rollback.

The move signals a potential shift in U.S. equity market regulation, as the commission reassesses whether legacy rules designed to protect quoted prices still serve current trading conditions. Any final change would affect the regulatory framework that has guided order handling and quote interaction across national market system stocks for years.

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