The Securities and Exchange Commission has proposed amendments that would rescind two Regulation NMS rules governing U.S. equity markets. The proposal would eliminate Rule 611, which contains the trade-through prohibition for national market system stocks, and Rule 610(e), which restricts locking and crossing quotations.
The proposal would also remove related defined terms from Rule 600 and make conforming changes to other related provisions. Regulation NMS has governed key parts of U.S. equity market structure for nearly two decades, making the proposal a significant deregulatory move for market participants.
SEC Chairman Paul S. Atkins said the proposal is intended to simplify market structure, reduce costs, and allow competition and innovation to shape the evolution of equity markets. “After two decades of Rule 611, it is high time that the Commission review its unintended consequences that have hindered — rather than enhanced — the long-term growth of our markets,” he said.
The public comment period will remain open for 60 days after the proposing release is published in the Federal Register.
