In remarks at a roundtable on Rule 611 of Regulation NMS, U.S. Securities and Exchange Commission Chair Paul S. Atkins argued that the Regulation NMS framework, particularly Rule 611’s trade-through prohibitions, warrants a fresh review and noted that many market participants support modifying or fully rescinding the rule. He linked the existing regime to market fragmentation, dispersed liquidity and reduced transparency, while stressing that any changes should be approached carefully and deliberatively. The roundtable was positioned as a next step following an earlier SEC roundtable and subsequent comment letters, which surfaced possible reform options including volume thresholds for protected quotes, block exceptions, removing the locked and crossed market prohibition, adjustments to access fee caps, and revisions to the market data revenue allocation formula. Discussion at this roundtable was structured to explore Rule 611’s interactions with Rule 610 (fair access, access fees and locked/crossed markets), Rule 600 (definitions tied to the trade-through rule, impacts on the National Best Bid and Offer, and incentives created by consolidated market data plan revenue allocation), and potential enhanced best execution guidance if Rule 611 is modified or rescinded. Atkins encouraged continued public input through the SEC’s comment file as the reassessment of Regulation NMS proceeds.
U.S. Securities & Exchange Commission 2025-12-16
U.S. Securities and Exchange Commission Chair Paul S. Atkins advances reassessment of Regulation NMS Rule 611 at roundtable
SEC Chair Paul S. Atkins called for a review of Regulation NMS, especially Rule 611's trade-through prohibitions, due to market fragmentation and reduced transparency. The roundtable considered reforms like volume thresholds, block exceptions, and access fee cap adjustments. Atkins stressed careful consideration of changes and encouraged public input via the SEC's comment file.