Live Feeds
● LIVE Updated 27d ago · 23 sources tracked

Robinhood backs push to scrap a market rule most traders don't know exists

Robinhood is urging the SEC to eliminate Rule 611, also known as the Order Protection Rule. This rule prevents markets from skipping the best available stock prices. Experts suggest the move could alter exchange connectivity and best execution practices.

RSS Source map (22)

What changed

New reports indicate the repeal could increase Robinhood trading volumes and change market structure.

Live updates

  1. Robinhood Supports SEC Proposal to Repeal Rule 611

    Robinhood is urging the SEC to eliminate Rule 611, also known as the Order Protection Rule. This rule prevents markets from skipping the best available stock prices. Experts suggest the move could alter exchange connectivity and best execution practices.

    What's confirmed:

    • Robinhood is backing a Securities and Exchange Commission proposal to eliminate Rule 611.
    • Rule 611 is a trade-through rule designed to stop the market from skipping the best available stock prices.
    • The SEC and FINRA eliminated the pattern day trader rule.
    • The pattern day trader rule's $25,000 equity requirement was replaced by a $2,000 minimum.
    • Robinhood netted $2.169 billion from a $2.2 billion convertible note offering.

    Still unconfirmed:

    • Eliminating Rule 611 could boost trading volumes at Robinhood.
    • The proposal may change exchange connectivity and best execution practices.
    • Robinhood used $290 million to repurchase 2.743 million shares.
    • Robinhood allocated $123.2 million to capped call transactions.
    confidence 90%

  2. Robinhood Supports SEC Proposal to Rescind Rule 611

    Robinhood is backing a Securities and Exchange Commission proposal to eliminate Rule 611. This trade-through rule was designed to prevent the market from skipping the best available stock prices. Supporters argue the change would modernize trading and reduce complexity.

    What's confirmed:

    • Robinhood supports the SEC proposal to rescind Rule 611.
    • Rule 611 is an order-protection rule that enforces the national best bid and offer.
    • SEC Commissioner Hester Peirce supports eliminating Rule 611, stating markets do not need it.
    • The SEC has proposed the rescission of Regulation NMS trade-through and locked/crossed market rules.

    Still unconfirmed:

    • The SEC's move to clear a tokenization path is unlikely to get the resilience of a full rule.
    confidence 90%