The U.S. Securities and Exchange Commission has proposed amendments to Regulation NMS that would rescind the trade-through prohibition in Rule 611 and the restrictions on locking and crossing quotations in Rule 610(e) for national market system (NMS) stocks. The proposal also would remove related defined terms in Rule 600 and make conforming changes elsewhere in Regulation NMS. The SEC presented the changes as a rollback of two 2005 market-structure rules that it now says have increased costs and complexity, limited order-handling and execution choices, and contributed to fragmented trading. Rule 611 prevents a trading center from executing an order at a price inferior to a protected quotation displayed by another trading center. Rule 610(e) restricts locked markets, where the best bid equals the best offer, and crossed markets, where the best bid is higher than the best offer. The SEC said U.S. equity markets are now highly competitive, interconnected and automated, and argued that removing the rules would reduce costs for market participants and leave more of the market structure outcome to competition, innovation and other market forces. The public comment period will remain open for 60 days after publication of the proposing release in the Federal Register.
U.S. Securities & Exchange Commission2026-06-11
U.S. Securities and Exchange Commission proposes rescinding Regulation NMS trade-through prohibition and quotation locking and crossing restrictions
The U.S. Securities and Exchange Commission has proposed rescinding Regulation NMS Rule 611 and Rule 610(e), which impose the trade-through prohibition and restrictions on locking and crossing quotations in NMS stocks. The proposal also removes related defined terms and makes conforming changes. Comments are due 60 days after Federal Register publication.