NYSE Arca is planning to give market makers more freedom in creating information barriers to allow them to carry out certain other business activities, such as investment banking. Until now, Arca Equities Rule 7.26 has prescribed specific barriers, or Chinese walls, which firms must have in place to separate their different business functions. Under the proposal, firms will still have to maintain Chinese walls but will be able to design their own policies and procedures.

The proposed change, by taking a more principles-based approach, would "eliminate unnecessary burdens while at the same time requiring an appropriate level of responsibility to ensure that material, non-public information continues to be protected," officials wrote in a related rule filing.