SEC · Wall Street · CryptoSlate
SEC targets 20-year-old rule standing between Wall Street and blockchain trading
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The Securities and Exchange Commission (SEC) is moving to dismantle a stock-trading rule that has governed Wall Street for two decades.
Key facts
- Rule 611 was adopted in 2005 as part of Regulation NMS, a broad overhaul of US equity-market rules
- Christopher Perkins, chief executive of 250 Digital Asset Management, said Regulation NMS and the NBBO have been among the biggest obstacles to unlocking tokenized equities
- On June 11, the agency submitted a proposal that would rescind Rule 611 of Regulation NMS, the trade-through rule that requires trading centers to prevent stock trades from executing at prices worse
- The Securities and Exchange Commission (SEC) is moving to dismantle a stock-trading rule that has governed Wall Street for two decades
Summary
01 The SEC proposed rescinding Rule 611 and Rule 610(e), two NMS rules that govern trade-throughs and locked quotes. 02 That could remove a key obstacle for tokenized equities, where AMMs struggle to match protected off-chain quotes. 03 But tokenized stocks would still face registration, settlement, and investor-rights questions during the comment period. On June 11, the agency submitted a proposal that would rescind Rule 611 of Regulation NMS, the trade-through rule that requires trading centers to prevent stock trades from executing at prices worse than protected quotes displayed elsewhere.