SEC Grants Temporary Exemptive Relief on Regulation NMS Compliance Dates

USA: SEC Grants Temporary Exemptive Relief on Regulation NMS Compliance Dates

On Oct. 31, 2025, the U.S. Securities and Exchange Commission (SEC) issued an order providing temporary exemptive relief from several upcoming compliance dates under Regulation National Market System (NMS), affecting rules on minimum pricing increments, access fee caps, and fee transparency. The relief is intended to address market‑participant concerns during a lapse in appropriations and follows a recent appellate court decision.

Extended Deadlines for Pricing and Fee Rules

The order postpones the effective date for Rules 600(b)(89)(i)(F) and 612, which implement the amended minimum pricing increment, until the first business day of Nov. 1, 2026. Likewise, Rule 610(c), governing the amended access fee caps, is delayed to the same November 2026 deadline. Rule 610(d), which requires exchange fees to be determinable at execution, is extended until the first business day of Feb. 1, 2026.

Additional Relief on Round‑Lot Definition

Exchanges are also exempted from the requirement to file proposed rule changes that would align exchange rules with the round‑lot definition in Rule 600(b)(93) of Regulation NMS. This exemption remains in effect until 30 calendar days after the lapse in appropriations ends.

Judicial Context and Rationale

The SEC noted that the relief follows a denial of a petition for review by the U.S. Court of Appeals for the D.C. Circuit and anticipates the conclusion of a partial stay on the amendments to Rules 600(b)(89)(i)(F), 610(c), and 612. The agency cited concerns that market participants might be unable to meet the Nov. 3, 2025 compliance deadline while funding gaps persist.

Implications for Market Participants

By extending the compliance timelines, the SEC aims to provide market participants with additional time to adjust systems, pricing models, and fee structures without risking regulatory violations. The temporary relief is limited in scope and does not alter the substantive requirements of the underlying rules.

SEC Chairman’s Statement

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

Next Steps and Oversight

The SEC indicated that it will continue to monitor the situation and may consider further actions if the appropriations lapse extends beyond the current relief periods. Exchanges remain obligated to comply with the rules once the temporary exemptions expire.

This report is based on information from SEC, licensed under Public Domain (U.S. Government Work). Source: Official U.S. Government release.