SEC Proposes Rescission of Regulation NMS Rules 611 and 610(e)

The Securities and Exchange Commission today proposed amendments to rescind Rules 611 and 610(e) of Regulation NMS.

"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," said SEC Chairman Paul S. Atkins. "This proposal is intended 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. I look forward to reviewing public comments as we take a careful, deliberative approach to avoid repeating the same mistakes that brought us here."

The Commission's proposed amendments would:

• Rescind Rule 611 of Regulation NMS, which contains the trade-through prohibition for national market system stocks.
• Rescind Rule 610(e) of Regulation NMS, which contains restrictions on locking and crossing quotations in national market system stocks.
• Rescind related defined terms in Rule 600 of Regulation NMS.
• Make conforming changes to other related provisions.

The public comment period will remain open for 60 days following the publication of the proposing release in the Federal Register.