What is National Market System Plan (NMSP)
The national market system plan (NMSP) is a nationwide system used in the United States for the selection and reservation of securities symbols, and also for the collection, processing and distribution of quotation and transaction information for exchange-listed securities.
BREAKING DOWN National Market System Plan (NMSP)
The National Market System Plan consists of plans in which FINRA, the largest independent regulator for U.S. securities firms, participates. These are the ISRA Plan, the CTA/CQ Plans, and the OTC UTP Plan. These NMS Plans are governed by section 11A of the 1934 Securities Exchange Act.
The Three National Market System Plans in which FINRA participates
- The Intermarket Symbol Reservation Authority or ISRA Plan: This plan governs the establishment, operation and administration of a uniform system for the selection and reservation of one- to five-character securities symbols. ISRA was developed to enhance the effectiveness and efficiency of the national market system and provide for fair competition between NMS Plan participants.
- Consolidated Tape Association/Consolidated Quotation Plan: This plan oversees the dissemination of real-time trade and quote information in New York Stock Exchange LLC (Network A) and Bats, NYSE Arca, NYSE American and other regional exchange (Network B) listed securities. Since the late 1970s, all SEC-registered exchanges and market centers that trade Network A or Network B securities send their trades and quotes to a central consolidator where the Consolidated Tape System (CTS) and Consolidated Quote System (CQS) data streams are produced and distributed worldwide. The current Participants include the Cboe BYX Exchange, Inc., Cboe BZX Exchange, Inc., Cboe EDGA Exchange, Inc., Cboe EDGX Exchange, Inc., Cboe Exchange, Inc., Chicago Stock Exchange, Inc., Financial Industry Regulatory Authority, Inc., Investors' Exchange LLC, Nasdaq BX, Inc., Nasdaq ISE, LLC, Nasdaq PHLX, Inc., The Nasdaq Stock Market LLC, New York Stock Exchange LLC, NYSE American LLC, NYSE Arca, Inc., and NYSE National, Inc., (collectively, the "Participants").
- OTC UTP Plan: The UTP Plan governs the collection, processing and distribution of all UTP Level 1 data. The UTP Plan is administered by the participant exchanges and associations listed under "Participants." These organizations determine policy matters and oversee system operations. The UTP Plan has been approved by the Securities and Exchange Commission (SEC). Amendments to the plan are filed with the SEC in accordance with Section 11A of the Securities Exchange Act of 1934. The UTP data feeds consist of one network, Tape C, which is the single source of consolidated market data for Nasdaq-listed securities. The UTP Securities Information Processor (SIP) makes available the UTP Level 1 information on data feeds. The UTP Quote Data Feed (UQDF) provides continuous quotations from all market centers trading Nasdaq-listed securities. The UTP Trade Data Feed (UTDF) provides continuous last sale information from all market centers trading Nasdaq-listed securities.