Overview
- The SEC proposed on June 11 to rescind Regulation NMS Rule 611 and Rule 610(e) and the public comment period closed on Aug. 17, leaving the agency to review sharply divided filings.
- Citadel Securities formally urged the SEC to reconsider on Aug. 17, calling the agency’s $250,000 per‑day compliance savings estimate insufficient and warning repeal could drive orders away from public exchanges, reduce liquidity, and harm retail investors.
- Blockchain groups including the Blockchain Association, Hyperliquid Policy Center and Douro Labs filed opposing letters that support repeal and ask the SEC to update best‑execution rules so tokenized and onchain venues can be treated as compliant execution venues.
- The SEC said repeal could cut exchange proliferation and lower system maintenance costs, estimating $22.8 million to $45.6 million in annual savings and about $40.9 million in one‑time implementation costs, but commenters say market‑data and connectivity costs may still persist.
- Rule 611 was adopted in 2005 to protect displayed prices across venues and any final repeal would require another SEC vote plus transition guidance that many market participants say must clarify how brokers will meet best‑execution duties and protect investors.