Regulation NMS

AAA

DEFINITION of 'Regulation NMS'

National Market System (NMS) is a set of rules passed by the Securities and Exchange Commission (SEC), which looks to improve the U.S. exchanges through improved fairness in price execution as well as improve the displaying of quotes and amount and access to market data.

INVESTOPEDIA EXPLAINS 'Regulation NMS'

This regulatory ruling is comprised of four main components:

  • The Order Protection Rule aims to ensure that investors receive the best price when their order is executed by removing the ability to have orders traded through (executed at a worse price).
  • The Access Rule, aims to improve access to quotations from trading centers in the National Market System by requiring greater linking and lower access fees.
  • The Sub-Penny Rule, which sets the lowers quotation increment of all stocks over $1.00 per share to at least $0.01.
  • Market Data Rules, which allocate revenue to self-regulator organizations that promote and improve market data access.
RELATED TERMS
  1. Volcker Rule

    The Volcker rule separates investment banking, private equity ...
  2. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
  3. National Market System - NMS

    A system with two main functions: 1. To facilitate trading of ...
  4. Trade Through

    A stock market order that is not executed at the best possible ...
  5. New York Stock Exchange - NYSE

    A stock exchange based in New York City, which is considered ...
  6. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
Related Articles
  1. The Birth Of Stock Exchanges
    Personal Finance

    The Birth Of Stock Exchanges

  2. Getting To Know The Stock Exchanges
    Options & Futures

    Getting To Know The Stock Exchanges

  3. The NYSE And Nasdaq: How They Work
    Options & Futures

    The NYSE And Nasdaq: How They Work

  4. Getting Into International Investing ...
    Mutual Funds & ETFs

    Getting Into International Investing ...

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center