SEC moves to rescind core Regulation NMS rules
The US Securities and Exchange Commission (SEC) on 11 June 2026 proposed rescinding two pillars of its equity market structure framework: Rule 611, the “order protection” or trade-through rule, and Rule 610(e), which restricts locked and crossed markets.
Rule 611, adopted in 2005 as part of Regulation NMS (National Market System), requires trading venues to route orders to whichever venue displays the best price. Rule 610(e) prevents quotes from locking or crossing one another. The SEC are looking to remove both, loosening the routing and quote-interaction rules that have governed US equities for two decades.
Chairman Paul Atkins argues that, after twenty years, the rules now introduce unnecessary complexity and cost rather than protecting investors. Others note the change could have knock-on effects for displayed liquidity, venue competition and market data quality.
Protected quotations support the consolidated market data feeds that make US equity pricing transparent. Unwinding that machinery can be considered a data-infrastructure question as well as a trading one, with the knock-on effects on data quality deserving a second look. Comments are due by 17 August 2026.
Read the full proposal here.
