Hyperliquid and Douro Labs jointly submitted comments to SEC in support of the abolition of the rules of trade penetration

Hyperliquid Policy Center and the Pyth Core Contribution Team, Douro Labs, jointly submitted comments to the United States Securities and Exchange Commission (SEC) in support of the abolition of the Rule 611 “No Trade Passage Rules” under Regulation NMS. According to HPC, the rule is based on the traditional centralized offer and the NBBO system design, which makes it difficult to fit AMM, the chain order book and the 7x24-hour trading environment after abolition, the SEC should further clarify how the chain market is best placed to perform its enforcement obligations and allow for the use of transparent, anti-manipulated independent reference prices when NBBO is not applicable, such as the chain source provided by Pyth. At the same time, HPC recommended that the monetization unit should continue to be integrated into the Reg NMS and the optimal implementation framework。