HPC leads policy push as trade-through rule faces SEC chopping table

The Hyperliquid Policy Center (HPC) and Pyth Network contributor, Douro Labs, asked the Securities and Exchange Commission (SEC), on August 17 2026, to end Rule 611. Rule 611 is the 2005 trade-through rule.

HPC and Duro Labs argue that Rule 611 is unable to properly describe how stock trades are settled on public blockchains and are urging the SEC to allow independent onchain price feeds. Their joint comment letter was filed under docket S7-2026-20, with the comment window closing the same day the letter was filed. It’s now left to the SEC to decide.

What Rule 611 made brokers do?

Rule 611 is at the core of the market-structure framework launched in 2005. The framework is referred to as Regulation NMS, and the role of Rule 611 was clear and simple: a broker handling a customer order cannot execute at a worse price when a better one is displayed somewhere else. 

If an exchange displays a stock at $90.00 and another at $90.01, the broker has to use the $90.00 price.

For this to work, every US exchange had to be displayed in a single feed. Venues relay their prices to the securities information processors (SIPs), which post the NBBO (national best bid and offer), and it becomes a reference price for every broker executing an order.

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