According to Techub News, citing NewsBTC, the U.S. Securities and Exchange Commission has proposed removing two provisions under Reg NMS: Rule 611 and Rule 610e. The stated aim of the proposal is to support the modernization of stock market structure. The proposal has not become a final rule and is currently still in the public comment stage.
Rule 611, also known as the order protection rule, is described as one of the core rules governing U.S. equity trading. By proposing the removal of Rule 611 together with Rule 610e, the regulator is reassessing parts of the traditional market infrastructure and how those rules apply within the existing trading framework.
The proposal may affect the room for development of tokenized securities and automated execution models, and it may also shape future trading models for tokenized stocks. Market participants are expected to follow the public comment timeline and the feedback submitted by relevant institutions in response to the SEC proposal.