At an open meeting chaired by SEC Chairman Paul Atkins, the Commission voted to propose rescinding Rule 611 (the “trade-through prohibition” requiring trades be executed at the national best bid or offer) and Rule 610(e) (restrictions on locking and crossing quotations) of Regulation NMS, in a significant deregulatory shift for U.S. equity market structure.
Atkins called Rule 611 a “grave misstep” that “prioritized the Commission’s assumptions about markets above what could emerge from competition,” and said the proposal is “intended to simplify market structure and reduce costs.”
The public comment period will remain open for 60 days after publication in the Federal Register.
Read: SEC.gov | SEC Proposes Rescission of Regulation NMS Rules 611 and 610(e)