U.S. Securities and Exchange Commission Commissioner Hester M. Peirce delivered remarks at a roundtable on trade-through prohibitions focused on Rule 611 of Regulation NMS, outlining how the discussion could inform whether the Commission should pursue amendments to the trade-through or order protection rule, retain it, or repeal it. Peirce highlighted the rule’s long-running controversy and set out key policy questions, including whether any revised Rule 611 should apply only to exchanges above a specified volume threshold and, if so, what that threshold should be. She also raised potential knock-on issues for other Regulation NMS provisions such as Rule 610’s access fee cap and Rule 612’s minimum tick size, and asked whether similar reasoning should be applied to the options market’s trade-through regime under a joint industry plan. The remarks emphasized that any change would need to account for market structure complexity across investors, exchanges, alternative trading systems, broker-dealers and other firms, as well as ongoing technological change, including tokenization.
U.S. Securities & Exchange Commission 2025-09-18
U.S. Securities and Exchange Commission Commissioner Peirce frames options to amend or repeal Regulation NMS trade-through rule
SEC Commissioner Hester M. Peirce discussed potential amendments to Rule 611 of Regulation NMS at a roundtable on trade-through prohibitions. Key considerations include whether revised rules should apply only to exchanges above a certain volume threshold and implications for other Regulation NMS provisions. Peirce emphasized the need to consider market structure complexity and technological changes in any amendments.