The U.S. Securities and Exchange Commission (SEC) announced that it will host a roundtable, scheduled for September 18, 2025, to debate the trade-through prohibitions in the equity and listed options markets of the National Market System (NMS).
Specifically, the discussion will focus on the trade-through ban under Rule 611 of Regulation NMS (Reg NMS). “The NMS Rule and its Rule 611 have not been effective for investors or for brokers, given the market distortion and resulting manipulation by those seeking to exploit the structure of the NMS Rule,” stated Chairman Paul S. Atkins, justifying the agency’s decision to hold the roundtable.
“The Commission must provide the public with the opportunity to weigh in on aspects of our regulations that deserve updating, and I look forward to the input we will receive on various aspects of the direct trading prohibition under Rule 611 as it applies to NMS stocks, and the analogous NMS plan prohibition applicable to listed options,” the official explained.
What Does the Trade-Through Ban Under Rule 611 Consist Of?
The trade-through ban under Rule 611 of Regulation NMS (Reg NMS) is a rule by the U.S. Securities and Exchange Commission designed to protect retail investors and promote fair competition among stock markets.
This rule applies to the National Market System (NMS), which includes the major exchanges where stocks are traded in the U.S., such as the NYSE and Nasdaq.
Rule 611, also known as “the Order Protection Rule,” prohibits an exchange or trading center from executing an order at a price worse than the best price available on another exchange. This phenomenon is known as a trade-through.
Rule 611 is intended to ensure that institutions automatically route orders to where the best available price is. This protects the investor from overpaying (or underselling) when a better offer exists on another market.
According to the SEC, the roundtable will be open to the public and will take place at SEC headquarters, located at 100 F Street, N.E., Washington, D.C., on September 18. The discussion will be streamed live on SEC.gov and a recording will be made available afterward. Information about the agenda and roundtable speakers will be published prior to the event.
