Blockchain Association backs SEC bid to scrap two NMS rules

The Blockchain Association has written to the U.S. Securities and Exchange Commission (SEC) in support of eliminating Rule 611 and Rule 610(e) from the National Market System (NMS), a set of rules adopted in 2005. Rule 611 gives NMS stocks intermarket trade protection and is designed to prevent trade-throughs, meaning trading venues should honor better quotes available on other channels. Rule 610(e) limits the display of locked and crossed quotations. In June, the SEC proposed scrapping both rules, saying the change could simplify market structure and reduce costs for market participants. The public comment period on that proposal ended on Monday. In its letter, the Blockchain Association said: “The logic behind repealing these rules is that it emphasizes the general benefits of allowing tokenized securities markets to develop. Specifically, this logic tends to weigh multiple factors when evaluating securities trading, including the benefits of tokenized securities.”