SEC targets Rules 611 and 610(e); 60-day comment window opens

The SEC proposed rescinding two market-structure rules that affect every national market system stock. The June 11 release targets Regulation NMS Rule 611, the trade-through prohibition, and Rule 610(e), the restrictions on locking and crossing quotations. The proposal also would rescind related definitions in Rule 600 and make conforming changes.

The market impact is structural rather than single-stock. Rule 611 has shaped routing, displayed quotes, exchange economics, and best-execution workflows for roughly two decades. SEC Chairman Paul S. Atkins said the proposal is intended to simplify market structure, reduce costs for market participants, and allow competition and innovation to shape equity-market evolution.

Item | Current rule | SEC proposal
Rule 611 | Trade-through prohibition | Rescind
Rule 610(e) | Locked/crossed quote restrictions | Rescind
Rule 600 | Related definitions | Conforming removals
Comment period | Public review | 60 days after Federal Register publication

For exchanges, brokers, market makers, and institutional desks, the proposal could change order-routing incentives and venue competition if adopted. The SEC framed the move as a review of unintended consequences after two decades of Rule 611. The agency did not adopt a final rule; it opened a formal comment process.

The next watch item is the proposing release in the Federal Register and the comment letters from exchanges, wholesalers, broker-dealers, asset managers, and retail investor advocates. Those filings will show whether the market sees cost savings, execution-quality risk, or both.