Story perspectives

SEC Proposes Dropping Trade-Through Rules, Unlocks Tokenized Stocks

6/13/2026

Summary

SEC Proposes Reforms

The SEC proposed on June 11, 2026 to eliminate Rule 611 and Rule 610(e), which ban trade-throughs and locked or crossed quotations.
It opened a 60-day comment period, projects $54.2 million-$77 million annual savings, and may replace the rules with a best-execution framework while keeping registration, custody, clearing and FINRA rules unchanged.
Galaxy Digital research head Alex Thorn said the change unlocks tokenized stocks and lets market makers trade without trade-through violations.

Summary

SEC Flags Off-Exchange

The SEC reports that off-exchange trades comprised over 50 percent of equity volume in H1 2025, that 17 exchanges operate with no exchange exceeding a 20 percent share, and that Rule 611 fuels a latency-arms race exposing child orders.
Chair Paul Atkins tied rule’s impact to “Project Crypto,” launched in August 2025.
Analyst Jaret Seiberg forecasts final adoption in Q1 2027 and suggests early pilots may receive exemptive relief under Financial Industry Regulatory Authority (FINRA) Rule 5310.

History

Historical Context

In 1975 Congress authorized the SEC to create a national market system, leading to the 2005 Regulation NMS that added Rule 611 (Order Protection) to require best-price execution on venues like the NYSE and NASDAQ. Critics argue the rule increased fragmentation and high-frequency trading; supporters say it merely enforces brokers’ duty to obtain the best price.

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SEC Proposes Reforms

The SEC proposed on June 11, 2026 to eliminate Rule 611 and Rule 610(e), which ban trade-throughs and locked or crossed quotations.
It opened a 60-day comment period, projects $54.2 million-$77 million annual savings, and may replace the rules with a best-execution framework while keeping registration, custody, clearing and FINRA rules unchanged.
Galaxy Digital research head Alex Thorn said the change unlocks tokenized stocks and lets market makers trade without trade-through violations.

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