In remarks at a roundtable on trade-through prohibitions, U.S. Securities and Exchange Commission Chairman Paul S. Atkins argued that Rule 611 of Regulation NMS, the Trade-through Rule, “very clearly demands a course correction” and welcomed staff work reassessing Regulation NMS. He noted his comments reflected his personal views rather than an institutional SEC position. Atkins said the Trade-through Rule’s requirement to execute at or within the National Best Bid and Offer (NBBO) has effectively reduced “best execution” considerations to price alone, limiting the ability of market participants to prioritise factors such as speed, likelihood of execution, or order-type attributes. He linked the rule to increased market fragmentation and liquidity being split across an unprecedented number of venues, while also describing fewer broker-dealers and traditional market makers amid rising technology and regulatory costs. He further argued that institutional investors seeking block liquidity can be forced to exhaust limited displayed liquidity at the NBBO first, potentially increasing information leakage. He said he has asked SEC staff to take a considered approach as they review Regulation NMS and develop recommendations, with a view to avoiding what he characterised as past regulatory missteps.
U.S. Securities & Exchange Commission 2025-09-18
U.S. Securities and Exchange Commission Chair Atkins calls for a course correction on Regulation NMS trade-through prohibitions
SEC Chairman Paul S. Atkins, in a roundtable, called for reassessing Rule 611 of Regulation NMS, citing its impact on market fragmentation and liquidity. He argued the rule's price focus limits prioritizing other execution factors like speed and order-type attributes. Atkins emphasized the need for SEC staff to review Regulation NMS to prevent past regulatory errors.