The SEC is preparing to propose a full repeal of Rule 611 of Regulation NMS, better known as the trade-through rule, with a commission vote scheduled for the week of June 9, 2026. If approved, it would undo one of the most consequential pieces of US equity market structure regulation adopted in the last twenty years.
Rule 611 was adopted in 2005 as part of the broader Regulation NMS framework. The rule requires trading venues to route orders to whichever exchange is displaying the best price, preventing trades from executing at inferior prices when a better quote existed elsewhere.
Why the rule is under fire
The rule was controversial from the moment it was born. Current SEC Chairman Paul Atkins dissented from its original adoption back in 2005, arguing at the time that it creates market distortions and promotes “gamesmanship.” Two decades later, he’s now in a position to do something about it.
The push toward repeal gained significant momentum following an SEC roundtable held on September 18, 2025. During that session, market participants voiced strong support for eliminating the rule entirely, citing high compliance costs, market fragmentation, and diminished competition as core grievances.
