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SEC Wants to Remove Two Major Rules of the U.S. Stock Market to Pave the Way for Innovation

The U.S. Securities and Exchange Commission (SEC) proposes to eliminate Regulation National Market System (Reg NMS) Rule 611 and Rule 610(e), two rules that have been the foundation of stock trading structure in the United States for years.
According to the SEC, this move aims to reduce compliance costs while providing greater room for competition, innovation, and market mechanisms to shape the future evolution of the U.S. stock market.
Rule 611, known as the Order Protection Rule, has required exchanges and market participants to execute transactions at the best available prices across all U.S. stock markets. Meanwhile, Rule 610(e) governs various aspects related to access and fees imposed within the stock trading system.
The SEC believes that the current market structure has evolved significantly since these rules were first implemented. Technological advances, increasing speeds of electronic trading, and the emergence of new trading platforms are prompting regulators to consider whether these old rules are still relevant in today’s modern market conditions.
Proponents of the proposal argue that removing these rules could improve market efficiency and encourage innovation in the trading sector. They believe that freer competition could lead to better services for investors and market participants.
However, some observers warn that such changes could spark debates over investor protection and transaction execution quality. Therefore, the SEC’s proposal is expected to be a major topic of interest for the financial industry and capital market players.
If approved, this move could become one of the biggest changes to the structure of the U.S. stock market in decades and could influence how stock trading is conducted in the future.