Markets Weekly Notes
May 25 – May 31 · 2026-W22
1 event this week
🏛️ Fed AML reform alignment Compliance
🏛️ Reg NMS reform debate Markets
🔄 Quiet week Data Engineering
🧠 Feynman Takeaway
House Market Structure Hearing on Reg NMS reform. Rule 611 (Order Protection Rule) under scrutiny. Record $1T single-day trading volume highlighted the need for modernized regulation.
House Hearing: Reg NMS Reform Intensifies
In plain English
The House Financial Services Committee held a market structure hearing focusing on Reg NMS reform. Rule 611 — the Order Protection Rule (trade-through rule) — was the main target. Critics argued it was outdated in a world of 23/5 trading, sub-penny increments, and 51.9% off-exchange volume. US equity trading surpassed $1 trillion in a single day this week.
Analogy
Imagine a traffic law written in 2005 that says 'all cars must stop at every intersection.' In 2026, with self-driving cars and 23-hour traffic, that law is obsolete. That's Rule 611 — a 2005 regulation struggling with a 2026 market.
Why it matters
The $1T single-day volume was a powerful data point: US equity markets were the largest, most active in history. Regulation designed for a smaller, slower market needed updating.