Backing Away

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Dictionary Says

Definition of 'Backing Away'

Failure by a market maker in a security to honor the quoted bid and ask prices for a minimum quantity. Backing away constitutes a serious violation of industry regulations. NASD Regulation Inc uses an automated market surveillance system to enable the resolution of backing-away complaints in real time.
Investopedia Says

Investopedia explains 'Backing Away'

Backing away constitutes a breach of SEC Rule 11Ac1-1 or the firm quote rule, which requires a market maker to execute an order presented to it at a price at least as favorable as its published quotation, up to its published quotation size. A potential backing-away complaint has to be brought to the attention of the Market Regulation Department within five minutes of the alleged offense. Otherwise, it may be difficult for department staff to obtain a contemporaneous trade execution from the market maker.

NASD Regulation does not pursue immediate disciplinary action for an individual backing-away complaint where a contemporaneous trade execution from the market maker is obtained or offered. However, department staff keep a record of such transgressions, and repeated non-compliance with the firm quote rule could result in disciplinary action.

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'Backing Away'

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    ... If the market maker refuses to do business at the firmly quoted price
    after the fact, his or her action is called backing away. ...

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    ... This is a one-customer business (Nokia (NYSE:NOK)) and TI is basically backing away
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    ... Tickers in this Article: AIG, FUN, WNI, WOLF. This week's activist filings continue
    to show that investors aren't backing away in this market. ...

  • Johnson Controls Has A Lot To Live Up To

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    ... in this market from the likes of United Technologies (NYSE:UTX) and Honeywell
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    ... Sprint Getting Some Distance From Clearwire On the flip side, Sprint seems
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  • Series 7 Study Guide - Securities Markets - Prohibited Activities ...

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    ... Backing Away (NASD IM-3320): market makers whose job it is to maintain an orderly
    market by serving as an entrepôt between buyers and sellers must honor ...

  • Spotting A Forex Scam

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    ... any potential gains resulting from a good investment are eaten away by commissions ...
    They tout their long experience and trading abilities with backing by people ...

  • Stocks For The New "Normal"

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    ... Talk to any mortgage professional and they will tell you that nearly all their business
    is a result of government backing and they don't want it to go away. ...

  • Rent-To-Own Real Estate Full Of Pitfalls

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    ... purchase by the end of the lease period and has legal ramifications for backing
    out. ... However, if the price is too high, the lessee can just walk away and shop ...

  • Beer: The New Liquid Gold

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    ... a new all-time high last week, but the fundamentals are not backing it to ... fact they
    concentrate on craft beers that could continue to steal away market share ...

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