SEC Moves to Rescind NMS Trade-Through, Locked-Crossed Rules
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- The SEC proposed amendments on June 11, 2026 to rescind Rules 611 and 610(e) of Regulation NMS, along with related defined terms in Rule 600 and conforming changes to other provisions.
- Rule 611 contains the trade-through prohibition for national market system stocks — the rule barring trades at prices inferior to the best displayed quote on another venue.
- Rule 610(e) contains the restrictions on locking and crossing quotations in national market system stocks, limiting when venues can display prices that match or cross the national best bid/offer.
- SEC Chairman Paul S. Atkins framed the move as overdue, saying "after two decades of Rule 611, it is high time that the Commission review its unintended consequences that have hindered — rather than enhanced — the long-term growth of our markets."
- Atkins said the proposal aims to "simplify market structure and reduce costs for market participants while allowing competition, innovation, and other market forces to shape the continuing evolution of our equity markets."
- The public comment period will remain open for 60 days following publication of the proposing release in the Federal Register.
Why it matters: Rescinding Rule 611 would dismantle the foundational rule that has governed U.S. equity trading for roughly two decades — the trade-through prohibition that forces orders to route to the venue displaying the best price. The 60-day comment window gives exchanges, wholesalers, and broker-dealers a narrow window to argue for or against reshaping the bedrock plumbing of U.S. stock markets.
