Lates News

The SEC proposes to repeal Rule 611 (trade-through rule) and Rule 610(e) (lock/cross market restriction) of the National Market System regulations. Rule 611 requires trading centers to prevent trades from occurring at prices inferior to those available on other trading platforms. This rule is one of the major structural barriers to trading tokenized US stocks in DeFi because automated market makers (AMMs) cannot comply with the NBBO requirement, which inevitably constitutes "trade-through." Rule 610(e) requires trading platforms and the national securities association to establish rules to prevent members from improperly displaying locked or crossed quotes to maintain market order and price protection.