What to know:
- Supports SEC’s proposal to rescind 611 and 610(e) but wants equal onchain/offchain execution, competed RFQ, and no new registration for neutral routers.
- Rule 611’s trade-through protection doesn’t fit AMMs, which can’t ingest SIP data, blocking compliant tokenized NMS pools.
- SEC comment window ends Aug 2026, forcing overhaul of routing and best execution
Ondo argued Rule 611 was developed for centralized exchanges with one-way trading, noting that as Galaxy Research said, a DEX cannot ingest SIP data or execute intermarket sweep orders, so any tokenized NMS stock pool attempting to comply with Rule 611 will structurally fail.
For Ondo Stock supporters, as well as ATS and other market makers, the changes may determine whether Robinhood, Kraken and Coinbase’s tokenized stocks can compete with the existing trading order book and route orders directly.
A Little Background and Possible Developments at the Moment
As RWA.xyz, tokenized stocks are valued at over $1 billion. The SEC has until August 2026 to get the required 60 days of comments.
If the changes are made, then dealers and exchanges will have to change their procedures for how they route orders and their surveillance mechanisms, with policies on best execution. This will decide how securities of a traditional nature and tokenized ones will interact with each other on the market.
The SEC has until August 2026 to get the required 60 days of comments. If the changes are made, then dealers and exchanges will have to change their procedures for how they route orders and their surveillance mechanisms with policies on best execution. This will decide how securities of a traditional nature, and tokenized ones, will interact with each other on the market.
Also Read: MoneyGram Ramps Expands to Solana With Global Crypto-to-Cash Access
SEC Modernization Beyond Rule 611 Repeal
Real-world asset issuer Ondo Finance has called on the SEC to modernize equity market structure, as the regulator’s rescinding decision of Rule 611 of Regulation NMS, the trade-through rule for U.S. stock execution since 2005, is under consideration.
Source: Ondo Finance
Ondo Finance published a comment letter supporting the removal of this rule, stating that this action alone will not fully enable interoperability between tokenized and traditional markets.
Also Read: ONDO Price Could Target $1.30 as Ondo Expands Tokenized RWA Market
3 Safeguards for SEC’s 611 Repeal
SEC’s April 01 2024 proposal would eliminate Rules 611 as well as 610(e), removing the requirement for routing an order to a venue that has a best-protected quote, which they drafted and the SEC adopted.
Source: Finazon
This platform for tokenized U.S. stock entitlements that are issued via DTC is run through a combination of broker-dealer Ethereum Alpaca and custodian BitGo, as which this company has requested the Commission for three safety measures: execution standards must be onchain as well as offchain, tokenized orders with RFQ pricing competing, and a disclaimer that one doesn’t need to get a new registration to operate a neutral execution infrastructure.
Also Read: ONDO Price Targets $0.375 as Ondo Finance Expands Tokenized Stocks Access
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