The SEC Proposes to Repeal Two Rules of the National Market System Regulation to Clear the Way for On-chain Tokenization of Stocks

BlockBeats News, June 12, the U.S. SEC proposed to eliminate Rule 611 of Regulation NMS (Order Protection Rule) and Rule 610(e) (Locked/Crossed Market Rule).

Rule 611 requires trading centers to prevent trades from occurring at prices inferior to those displayed on another trading platform. This rule has been a significant structural barrier for the trading of tokenized U.S. stocks in DeFi, as automated market makers (AMMs) are unable to comply with the NBBO requirement, inevitably resulting in "trade-through" transactions;

Rule 610(e) requires trading platforms and the National Securities Association to establish rules to prevent members from improperly displaying locked or crossed quotations to maintain market order and price protection.

Source: BlockBeats

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