On May 1st, the SEC’s Division of Trading and Markets adopted technical amendments to Rule 610 of Regulation NMS under the Exchange Act. The amendments are designed to modernize outdated cross‑references in provisions governing locking and crossing quotations. The rulemaking also corrects an obsolete reference in the rules that delegate authority to SEC staff to allow certain exemptions.
The adopted rules introduce the following changes to Rule 610:
- revises the cross‑reference in Rule 610(e)(3) so that exceptions now properly point to paragraph (e)(1) rather than (d)(1)
- ensures alignment with the 2024 Regulation NMS amendments, which renumbered paragraph (d) as (e) without changing its content
- keeps current requirements for exchanges and associations that prevent members from displaying quotations that lock or cross protected quotes in NMS stocks
Under the rule, delegated authority rules will:
- modify 17 CFR 200.30‑3(a)(81) to reflect that the authority to grant exemptions from Rule 610 now resides in paragraph (f) rather than (e)
- provide that the Director of the Division of Trading and Markets continues to operate under the correct delegated authority
- preserve the SEC’s intended framework for staff‑level exemption decisions
For further details, please see the Technical Amendments to Rule 610(e) of Regulation NMS and to Delegation of Authority to Grant or Deny Exemptions from Rule 610 of Regulation NMS final rule on sec.gov.
The final rule will be effective upon its publication in the Federal Register.
Sources:
SEC Approves Amendment to NMS Plan to Further Reduce the Costs of the Consolidated Audit Trail (sec.gov)
Final Rule (sec.gov)
