SEC Grants Market Participants More Time to Meet Regulation NMS Amendments

Key Takeaways

• Temporary Extensions Granted: The SEC has extended compliance dates for several Regulation NMS rules, including those on pricing increments, access fees, and exchange fee determinability.
• New Deadlines: Rules 600(b)(89)(i)(F), 612, and 610(c) will now take effect on the first business day of November 2026, while Rule 610(d) will take effect on the first business day of February 2026.
• Round Lot Rule Relief: Exchanges also received temporary relief from updating exchange rules to reflect the amended round lot definition until 30 days after the end of the lapse in appropriations.
• Judicial Review Context: The move follows the D.C. Circuit’s denial of a petition for review and the anticipated conclusion of the SEC’s partial stay related to the amendments.
• SEC’s Rationale: Chairman Paul S. Atkins said the relief ensures “orderly market functions” amid compliance challenges and recent government funding lapses.

Deep Dive

The Securities and Exchange Commission (SEC) has granted temporary exemptive relief extending compliance deadlines for several amended provisions under Regulation NMS, citing recent legal developments and market readiness concerns.

In a recent order, the Commission delayed the compliance dates for key rules addressing minimum pricing increments, access fees, and transparency of better-priced orders. These amendments, part of the SEC’s broader market structure modernization effort, were initially slated to take effect on November 3, 2025.

Under the exemptive order, Rules 600(b)(89)(i)(F) and 612, which govern the amended minimum pricing increment, as well as Rule 610(c) addressing amended access fee caps, will now take effect on the first business day of November 2026. Meanwhile, Rule 610(d), which requires that exchange fees be determinable at the time of execution, will take effect on the first business day of February 2026.

The SEC also provided temporary relief to exchanges from filing proposed rule changes to align with the revised round lot definition in Rule 600(b)(93) until 30 days after the end of the lapse in appropriations.

The Commission said the order was issued following a denial of a petition for review by the U.S. Court of Appeals for the D.C. Circuit and the anticipated conclusion of the SEC’s partial stay on certain rule amendments. The move reflects concerns about market participants’ ability to meet compliance requirements during the ongoing lapse in federal appropriations.

SEC Chairman Paul S. Atkins said the decision was aimed at ensuring stability and clarity for the markets.

“The order issued today will provide clarity to the market regarding certain upcoming compliance dates,” Atkins said. “In light of recent events, exemptive relief from the Nov. 3, 2025, compliance date is necessary to facilitate orderly market functions.”

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