SEC moves to scrap trade-through rule to simplify markets
**SEC Moves to Scrap Trade-Through Rule**
The SEC has proposed rescinding Regulation NMS Rules 611 and 610(e), questioning whether the trade-through rule still protects investors or simply adds routing complexity.
Rule 611 stops trades from executing at worse prices if a better quote exists elsewhere. Rule 610(e) governs locked and crossed quotes. Removing both would shift more responsibility to competition and execution quality, reducing mandatory venue interactions.
Tokenized equity and blockchain-based ATS platforms aren’t named as direct beneficiaries. But a simpler market-structure framework could lower friction for alternative execution models, especially those using on-chain settlement and programmable ownership.
The proposal is not final. Public comments are open, and major trading firms are expected to debate whether protections outweigh the operational burden.
