Securities Regulation Daily Wrap Up, EXCHANGES AND MARKET REGULATION—Selway invites industry feedback on tokenized securities and Reg NMS reform, (Apr 14, 2026)
The Director of the Division of Trading and Markets asked for industry input into tokenized securities and the reform of Regulation NMS.
Speaking at the Security Traders Association of New York's 90th annual conference, Jamie Selway, the Director of the SEC's Division of Trading and Markets, highlighted the Association's engagement with the Commission throughout its history. Calling for industry engagement on both emerging and legacy issues, Selway said the Commission is actively working on rules affecting tokenized securities and considering updates to Regulation NMS. Selway's remarks highlighted ongoing Division efforts and invited feedback from market professionals.
Association. Entitled "Freedom of Associations," Selway's address drew on the historical cooperation between the Commission and voluntary organizations like STANY. Soon after the system of self-regulation was established in 1938, the NASD was formed, and Selway remarked that the Commission has long recognized the value of partnership with industry to solve problems and advance the interests of the investing public. In that spirit, Selway asked for his audience's input into two areas of the Division's focus: tokenized securities and Regulation NMS reform.
Tokenized securities. Selway noted that Chairman Atkins spoke of the promise of tokenized securities earlier this year and the Commission's readiness to work with entrepreneurs "building for a better future." In furtherance of that end, Selway said the Division has been working with interested parties on functions in that marketplace. He said the Division's guiding principle has been "Innovation without arbitrage," meaning that the SEC's role is not to pick winners through arbitrary public sector policy choices, but to allow market forces to determine value.
Selway noted the Commission's actions related to tokenized securities, including a no-action letter greenlighting DTC's tokenization pilot program and a staff statement on wallets and other user interfaces investors might use to engage with these tokenized securities. He added that the Division is working on an "innovation exemption" to allow certain trading venues to trade tokenized securities. Any feedback and additional ideas are welcome, he said, and are necessary to make sound, lasting policy.
Reg NMS. Selway next addressed Regulation NMS, which is over 20 years old and—many think—in need of modernization. Speaking before STANY in 2007, Chairman Atkins described Regulation NMS as a massive, unwarranted regulatory intrusion into the secondary trading markets. The Division, Selway said, has received input via two roundtables on Rule 611. Mentioning an exemption to Rules 610 and 612, he noted further that the Division is "keenly interested" in the appropriate level for an access fee cap and the proper scope for quoting in half-cent increments. The Division also may soon recommend asking for comments on potential changes to market data revenue allocation and for ways to modernize best execution obligations, he said.
Wrapping up, Selway stressed that the Division 'has much on its plate" and counsel from STANY's members "on issues and assets both novel and traditional" would be welcome. Voluntary associations such as STANY have set and upheld high standards, he said, and such groups have played a key part in building and maintaining our nation's institutions.
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