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ARTICLE · 17 JUNE 2026

SEC Proposes to Rescind Regulation NMS Rules 611 and 610(e)

Gesmer Updegrove LLP
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The SEC has proposed rescinding two central provisions of Regulation NMS that have governed U.S. equity trading for two decades. The proposal would eliminate the trade-through rule and locked/crossed markets restrictions, fundamentally reshaping how orders are routed and executed. Market participants face critical decisions about best execution frameworks, routing infrastructure, and compliance systems in what could become one of the most significant equity market structure reforms since 2005.

United StatesFinance and Banking
Braeden Anderson
Braeden Anderson

The SEC has proposed rescinding two central provisions of Regulation NMS: Rule 611, the trade-through rule, and Rule 610(e), the locked and crossed markets provision. If adopted, the proposal would mark one of the most significant equity market structure reforms since Regulation NMS was adopted in 2005.

The proposal reflects the Commission’s view that modern equity markets are now sufficiently automated, interconnected, competitive, and technologically advanced to function without the prescriptive intermarket price protection framework created two decades ago. For broker-dealers, exchanges, ATSs, wholesalers, institutional investors, retail brokerages, market makers, and compliance personnel, the proposal raises major questions regarding best execution, order routing, market data, exchange connectivity, displayed liquidity, exchange competition, and implementation planning.

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