Notice2026-11997
Order Granting Temporary Exemptive Relief, Pursuant to Section 36(a)(1) of the Securities Exchange Act of 1934 and Rules 610(f) and 612(d) of Regulation NMS, from Compliance With Rule 600(b)(89)(i)(F), Rule 610(c) and Rule 612 of Regulation NMS, as Amended
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Published
June 15, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 114 (Monday, June 15, 2026)</title>
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[Federal Register Volume 91, Number 114 (Monday, June 15, 2026)]
[Notices]
[Pages 36022-36024]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-11997]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105656]
Order Granting Temporary Exemptive Relief, Pursuant to Section
36(a)(1) of the Securities Exchange Act of 1934 and Rules 610(f) and
612(d) of Regulation NMS, from Compliance With Rule 600(b)(89)(i)(F),
Rule 610(c) and Rule 612 of Regulation NMS, as Amended
June 11, 2026.
I. Introduction
On September 18, 2024, the Securities and Exchange Commission
(``SEC'' or ``Commission'') adopted Regulation NMS: Minimum Pricing
Increments, Access Fees and Transparency of Better Priced Orders,\1\
which among other things: (1) amended Rule 612 of Regulation NMS to
establish a minimum pricing increment of $0.005 for bids, offers,
orders and indications of interest that are priced equal to or greater
than $1.00 per share in certain NMS stocks; \2\ (2) reduced the level
of the access fee caps under Rule 610(c) of Regulation NMS to $0.001
per share for protected quotations and other best bids and offers in
NMS stocks priced at $1.00 or more per share and 0.1 percent of the
quotation price for protected quotations and other best bids and offers
in NMS stocks priced less than $1.00 per share,\3\ and adopted Rule
610(d) of Regulation NMS \4\ to require all exchange fees and rebates
to be determinable at the time of execution; and (3) accelerated the
implementation of the round lot \5\ and odd-lot information \6\
definitions in Rule 600(b) of Regulation NMS and added information
about the best odd-lot order to the definition of odd-lot
information.\7\
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\1\ Securities Exchange Act Release No. 101070 (Sept. 18, 2024),
89 FR 81620 (Oct. 8, 2024) (``Adopting Release''). The Commission
adopted compliance dates for the amendments and set forth the dates
upon which the rules must be implemented. See id. at 81679-81681.
\2\ 17 CFR 242.612.
\3\ 17 CFR 242.610(c).
\4\ 17 CFR 242.610(d).
\5\ 17 CFR.242.600(b)(93).
\6\ 17 CFR 242.600(b)(69).
\7\ 17 CFR 242.600(b)(69)(iii).
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After the Commission issued the Adopting Release, between September
18, 2024, and October 30, 2024, petitions seeking review of certain of
the amended rules were filed in the U.S. Court of Appeals for the
District of Columbia Circuit (``D.C. Circuit'').\8\ In addition,
certain petitioners filed a motion with the Commission to stay the
effect of the amendments to Rules 610 and 612 of Regulation NMS pending
resolution of their petition for review to the D.C. Circuit. On
December 12, 2024, the Commission issued an order granting a partial
stay of the effect of the amendments to Rules 600(b)(89)(i)(F), 610(c)
and 612 pending the completion of judicial review.\9\ On October 14,
2025, the D.C. Circuit issued an opinion denying the petition for
review.\10\
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\8\ We the Investors et al., v. SEC, No. 24-1302 (D.C. Cir.
Filed Sept. 18, 2024); We the Investors et al., v. SEC, No. 24-1303;
(D.C. Cir. Filed Sept. 18, 2024); We the Investors et al., v. SEC,
24-1319 (D.C. Cir. Filed Oct. 8, 2024); Cboe Global Markets., et
al., v. SEC, No. 24-1350 (D.C. Cir., filed Oct. 30, 2024). These
actions were consolidated. See Cboe Global Markets, Inc., et al v.
SEC, No. 24-1350 (D.C. Cir.) Doc. Nos. 2084891, 2086101.
\9\ See Securities Exchange Act Release No. 101899 (Dec. 12,
2024) (Order Granting Partial Stay). The Commission did not stay
amendments to Rule 610(d), Rule 603(b), and the definitions of round
lot and odd-lot information in Rule 600(b).
\10\ Cboe Global Markets, Inc., et al v. SEC, No. 24-1350 (D.C.
Cir. Oct. 14, 2025).
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In light of the denial of the petition for review, and in
anticipation of an end to the partial stay upon the completion of
judicial review as well as concerns about the ability of market
participants to comply with certain amendments by the dates set forth
in the Adopting Release,\11\ on October 31, 2025, the Commission, among
other things, granted temporary exemptive relief from the compliance
dates for Rules 600(b)(89)(i)(F), 610(c) and 612, as amended in the
Adopting Release, until the first business day of November 2026 to
allow affected entities additional time to come into compliance with
the amendments.\12\
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\11\ See supra note 1.
\12\ See Securities Exchange Act Release No. 104172, 90 FR 51418
(Nov. 17, 2025) (``Exemptive Relief Order'').
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On February 26, 2026, MEMX LLC (``MEMX'') filed with the Commission
an application to obtain temporary exemptive relief \13\ pursuant to
section 36(a)(1) of the Securities Exchange Act of 1934 (``Exchange
Act'') \14\ and Rule 610(f) of Regulation NMS \15\ to temporarily delay
implementation of certain amendments to Rule 610(c) of Regulation NMS
that the Commission adopted in the Adopting Release.\16\ On
[[Page 36023]]
March 20, 2026, the Commission published notice of the MEMX Application
and requested public comment on, among other things, whether such
relief should be granted and what the potential benefits and drawbacks
may be of granting the relief as requested.\17\ In connection with the
Notice of MEMX Application, the Commission also requested comment more
broadly on whether another temporary exemption from the amended
compliance dates for Rules 600(b)(89)(i)(F), 610(c), and 612 of
Regulation NMS, as amended, is warranted. The Commission received
comment letters in response to the Notice of MEMX Application.\18\
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\13\ See Letter from Adrian Griffiths, Head of Market Structure,
MEMX LLC, dated Feb. 26, 2026 (``MEMX Application''). The MEMX
Application may be found at <a href="https://www.sec.gov/rules-regulations/exchange-act-exemptive-notices-orders">https://www.sec.gov/rules-regulations/exchange-act-exemptive-notices-orders</a>. This Order Granting Temporary
Exemptive Relief takes no position on the MEMX Application at this
time. In issuing this Order, the Commission was informed, in part,
by comments submitted in connection with the Notice of MEMX
Application.
\14\ 15 U.S.C. 78mm(a)(1).
\15\ 17 CFR 242.610(f).
\16\ Specifically, the temporary exemptive relief requested by
MEMX, which would apply to all trading centers subject to Rule
610(c), would delay implementation of the amendments to Rule 610(c)
to: (a) protected quotations and other best bids and offers in those
NMS stocks that would continue to be subject to a $0.01 minimum
pricing increment pursuant to Rule 612(b)(2)(i), and (b) protected
quotations and other best bids and offers in NMS stocks that are
priced below $1.00. In addition, MEMX requested temporary exemptive
relief to allow exchanges to charge an access fee of up to $0.0015,
by modifying the $0.0010 access fee cap as adopted for those NMS
stocks that would be subject to the new minimum pricing increment of
$0.005 pursuant to Rule 612(b)(2)(ii).
\17\ See Securities Exchange Act Release No. 105058, 91 FR 14602
(Mar. 20, 2026) (``Notice of MEMX Application'').
\18\ The comment letters submitted in connection with the MEMX
Application may be found at <a href="https://www.sec.gov/rules-regulations/public-comments/s7-2026-10">https://www.sec.gov/rules-regulations/public-comments/s7-2026-10</a>.
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While several commenters stated that the MEMX Application should
not be granted,\19\ other commenters stated that a broader exemption
delaying compliance with Rules 610(c) and 612 should be granted.\20\
Several commenters expressed concerns about the ability of market
participants to comply with the dates set forth in the Exemptive Relief
Order given the scope of, and existing implementation schedule for,
certain other regulatory initiatives scheduled for 2026.\21\ One
commenter stated that ``market participants need to begin systems work
now given all of the other regulatorily mandated requirements that
require systems and technology changes,'' and not delaying the
implementation deadline for Rules 610 and 612 could add ``to the
potential stresses on the system.'' \22\
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\19\ See, e.g., Letters from Jeremy Betts, dated Mar. 20, 2026;
Kenny Andrews, dated Mar. 20, 2026; Joseph Saluzzi, Partner, Themis
Trading LLC, dated Apr. 7, 2026; R.T. Leuchtkafer, dated Apr. 24,
2026; Benjamin L. Schiffrin, Director of Securities Policy, Better
Markets, Inc., dated Apr. 24, 2026; and Tyler Gellasch, President
and CEO, Healthy Markets Association, May 11, 2026.
\20\ See, e.g., Letters from Katie Kolchin, CFA, Managing
Director, Head of Equity & Options Market Structure, Securities
Industry and Financial Markets Association (``SIFMA'') and Gerald
O'Hara, Vice President & Assistant General Counsel, SIFMA, dated
Mar. 31, 2026 and May 4, 2026 (``SIFMA Letter''); John A. Zecca,
Executive Vice, Global Chief Legal, Risk & Regulatory Officer,
Nasdaq, dated Apr. 17, 2026; Joanna Mallers, Secretary, PTG, dated
Apr. 24, 2026 (``PTG Letter''); Jaime Klima, General Counsel, New
York Stock Exchange, dated Apr. 27, 2026 (``NYSE Letter''); and
Partrick Sexton, EVP, General Counsel, and Corporate Secretary, Cboe
Global Markets, Inc., dated Apr. 29, 2026.
\21\ See, e.g., SIFMA Letter, supra note 21, at 4-5 (detailing
other industry-wide regulatory and market-structure initiatives and
stating ``overlapping deadlines require exchanges, brokers, vendors,
and clearing firms to simultaneously update matching engines,
routing logic, market-data infrastructure, billing systems, and
regulatory-reporting pipelines, often on the same codebases and with
the same constrained operations teams.''); NYSE Letter, supra note
21, at 2 (referencing launch of 23/5 trading and addition of certain
odd-lot quotes to the consolidated tapes); and PTG Letter, supra
note 21, at 2 (referencing launch of 23/5 trading and Rule 605
compliance).
\22\ SIFMA Letter, supra note 21 at 5.
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For the reasons discussed below, the Commission finds that it is
appropriate in the public interest and consistent with the protection
of investors to further extend the temporary exemptive relief that was
granted in the Exemptive Relief Order beyond the first business day of
November 2026 for Rules 600(b)(89)(i)(F), 610(c), and 612 to allow for
an orderly implementation of these Rules in light of other regulatory
initiatives scheduled for the balance of 2026. The temporary exemptive
relief from the compliance date will be as follows:
<bullet> Rules 600(b)(89)(i)(F) and 612 implementing the amended
minimum pricing increment: Until the first business day of November
2027.
<bullet> Rule 610(c) implementing the amended access fee caps:
Until the first business day of November 2027.
II. Discussion and Temporary Exemptive Relief
Section 36(a)(1) of the Exchange Act authorizes the Commission, by
rule, regulation, or order, to exempt, conditionally or
unconditionally, any person, security, or transaction, or any class or
classes of persons, securities, or transactions, from any provisions of
the Exchange Act, or any rule or regulation thereunder, to the extent
that such exemption is necessary or appropriate in the public interest,
and is consistent with the protection of investors.\23\ Rule 610(f) of
Regulation NMS authorizes the Commission, by order, to exempt from the
provisions of the rule, either unconditionally or on specified terms
and conditions, any person, security, quotations, orders, or fees, or
any class or classes of persons, securities, quotations, orders, or
fees, if the Commission determines that such exemption is necessary or
appropriate in the public interest, and is consistent with the
protection of investors.\24\ Rule 612(d) of Regulation NMS authorizes
the Commission, by order, to exempt from the provisions of the rule,
either unconditionally or on specified terms and conditions, any
person, security, quotation, or order, or any class or classes of
persons, securities, quotations, or orders, if the Commission
determines that such exemption is necessary or appropriate in the
public interest, and is consistent with the protection of
investors.\25\
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\23\ 15 U.S.C. 78mm(a)(1).
\24\ 17 CFR 242.610(f).
\25\ 17 CFR 242.612(d).
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Because of the competing demands and breadth of other industry-wide
market-structure implementation deadlines slated for the balance of
2026, the Commission finds it appropriate in the public interest and
consistent with the protection of investors to provide temporary
exemptive relief pursuant to section 36(a)(1) of the Exchange Act \26\
and Rules 610(f) \27\ and 612(d) \28\ of Regulation NMS to provide
additional time to allow affected entities to come into compliance with
Rules 600(b)(89)(i)(F), 610(c) and 612, as amended. Specifically, the
Commission is providing temporary exemptive relief until the first
business day of November 2027: (1) pursuant to section 36(a)(1) of the
Exchange Act and Rule 610(f) of Regulation NMS, trading centers \29\
from complying with Rule 610(c), as amended in the Adopting Release;
(2) pursuant to section 36(a)(1) of the Exchange Act and Rule 612(d) of
Regulation NMS, national securities exchanges, national securities
associations, alternative trading systems, brokers and dealers, from
complying with Rule 612, as amended in the Adopting Release; and (3)
pursuant to section 36(a)(1) of the Exchange Act, primary listing
exchanges and applicable plan processors from complying with Rule
600(b)(89)(i)(F) of Regulation NMS, as adopted in the Adopting Release.
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\26\ 15 U.S.C. 78mm(a)(1).
\27\ 17 CFR 242.610(f).
\28\ 17 CFR 242.612(d).
\29\ 17 CFR 242.600(b)(106).
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In response to the request for comment on the Notice of MEMX
Application, market participants stated that implementation of Rules
600(b)(89)(i)(F), 610(c) and 612 will require ``changes to pricing and
quoting logic, order-handling systems, fee/commission engines, market-
data consumption, and supervisory and compliance controls'' and such
changes ``cascade across entire market-structure stack,'' affecting
every type of market
[[Page 36024]]
participant.\30\ One commenter stated ``the current schedule requires
market participants to focus on the impending changes to Rules 610(c)
and 612 at the same time that they are absorbing other major changes to
equity market structure'' and stated ``[t]he regulatory burden of
[such] serial implementations is a heavy one.'' \31\ Another commenter
stated ``[t]he compression of `go-lives' into a single calendar year
increases the probability of implementation errors, data-quality
issues, routing instability, and unanticipated cross-venue feedback
loops.'' \32\ In determining whether to grant additional temporary
exemptive relief from the compliance date and the appropriate duration
for such relief, the Commission has not only considered the systems
changes necessary to implement the new minimum pricing increment,
including the minimum pricing increment indicator, and the rule filing
requirements under section 19(b) of the Exchange Act and Rule 19b-4
thereunder for implementing the amended access fee caps, but also the
cumulative impact on the national market system of requiring
implementation of Rules 610(c) and 612 simultaneously with other
industry-wide regulatory and market-structure initiatives scheduled for
2026.
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\30\ See SIFMA Letter, supra note 21, at 3.
\31\ See NYSE Letter, supra note 21, at 2.
\32\ See SIFMA Letter, supra note 21, at 5.
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In light of the number of implementation deadlines for other
significant market structure initiatives (e.g., launching 23/5 trading
and Rule 605 compliance) \33\ and responses to the request for comment
in the Notice of MEMX Application on whether the Commission should
grant another temporary exemption from the compliance dates for Rules
610 and 612, some market participants may not be able to complete the
necessary systems changes to implement Rules 600(b)(89)(i)(F), 610(c)
and 612. Accordingly, temporary exemptive relief from the compliance
date for these rules is appropriate to provide relevant market
participants with additional time to make the required systems changes
\34\ and comply with regulatory requirements. The exemption until the
first business day of November 2027 is appropriate in the public
interest, and consistent with the protection of investors because it
will provide sufficient time to facilitate an orderly transition to the
new and amended rules.
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\33\ See, e.g., SIFMA Letter, NYSE Letter and PTG Letter, supra
note 21.
\34\ In the Adopting Release, the Commission considered the
systems changes necessary to implement the amendments to Rules
600(b)(89)(i)(F) and 612 and considered the date by which the Time
Weighted Average Quoted Spread can be calculated during an
Evaluation Period. See Adopting Release, supra note 1, at 81680. In
addition, the Commission adopted a compliance date for the
amendments to Rule 610 to coincide with the compliance date for
Rules 600(b)(89)(i)(F) and 612. The Commission also stated that the
exchanges will have to file proposed rule changes pursuant to
section 19(b) of the Exchange Act and Rule 19b-4 thereunder to amend
their fee schedules to reflect the lower access fee caps. See id.
The Commission considered these factors in determining to provide a
one year extension from the compliance date.
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III. Conclusion
Accordingly, it is hereby ordered, pursuant to section 36(a)(1) of
the Exchange Act and Rules 610(f) and 612(d) of Regulation NMS, that
the Commission grants exemptive relief, as set forth in this order,
from compliance with Rules 600(b)(89)(i)(F), 610(c), and 612, as
amended in the Adopting Release until the first business day of
November 2027.
By the Commission.
Stephanie J. Fouse,
Assistant Secretary.
[FR Doc. 2026-11997 Filed 6-12-26; 8:45 am]
BILLING CODE 8011-01-P
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