Atkins argues Rule 611 incentivized venue proliferation that fragmented liquidity and created a complex, costly, opaque marketplace.
“I am concerned that what the Rule rather incentivized was a proliferation of new trading venues, which in turn fragmented liquidity and created an increasingly complex, costly, and opaque marketplace for order execution.”
Atkins says Rule 611 prioritized the SEC's assumptions over what competition and market forces could produce.
“Rule 611 prioritized the Commission’s assumptions about the way that markets and investors should interact above what could emerge from competition and market forces.”
Atkins calls Rule 611, the Trade-Through Rule, a grave misstep since his time as Commissioner in the 2000s.
“I have viewed as a grave misstep since I served as Commissioner in the Aughts: that is, Rule 611, also known as the “Trade-Through Rule.””