The SEC has proposed rescinding Rule 611, the order protection rule that has governed US markets for two decades
Canadian regulators are hitting pause on a market-structure overhaul that would have reshaped how dual-listed stocks trade, buying a full year before the new rules bite.
The Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO) have delayed their access fee and tick-size rule amendments by a year.
The rules now take effect on November 1, 2027, instead of November 2, 2026, the regulators said in a joint announcement.
The delay aligns Canada's timeline with the corresponding US Securities and Exchange Commission (SEC) rules, which now carry the same 2027 start date.
The amendments were designed to harmonize trading increments and trading fee caps on securities listed on both a Canadian recognized exchange and a US registered national securities exchange, known as US Inter-listed Securities, with the SEC's rules.
The CSA will pause its changes to National Instrument 23-101 Trading Rules and the related Companion Policy, while CIRO pauses its amendments to the Universal Market Integrity Rules covering trading increments.
The pause comes as the SEC moves to unwind a foundational piece of US market structure.
The commission has proposed rescinding Rule 611 of Regulation NMS, the trade-through prohibition commonly known as the order protection rule, along with Rule 610(e), which restricts locking and crossing quotations in national market system stocks.
The proposal is intended to "simplify market structure and reduce costs for market participants," SEC chairman Paul S. Atkins said.
He said it would leave competition and innovation to drive the markets' continued evolution.
In consultation with CIRO, the CSA will consider any action it needs to take in response to the SEC proposal, the regulator said, adding that any changes would follow its normal processes and be published for comment.
Each Canadian jurisdiction will enact the pause individually, according to the CSA, with Alberta and Ontario implementing it through a blanket order.
The public comment period on the SEC's proposal will stay open for 60 days following publication of the proposing release in the Federal Register.
