Reg NMS
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Reg NMS, or Regulation National Market System, is a set of rules proposed by the SEC in the wake of advances in electronic markets and order routing "to modernize and strengthen the regulatory structure of the U.S. equity markets" adopted under Section 11A of the Securities Exchange Act of 1934.[1] The rule was published in The Federal Register in 2005.
Reg NMS encompasses several rules. The Order Protection Rule, also known as the Trade-Through Rule, requires trading centers to route orders to the market that shows the best price. The Access Rule requires markets to provide automated quotes to ensure fair access to quotations. The Sub-Penny Rule prohibits market participants from trading in increments smaller than a penny.[2]
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Resources
Securities and Exchange Commission 17 CFR Parts 200, 201, et al. Regulation NMS; Final Rule
References
- ↑ Regulation NMS. Nasdaq. Retrieved on May 29, 2008.
- ↑ Reg NMS Cheat Sheet. Wall Street & Technology. Retrieved on May 29, 2008.
