Regulation NMS, short for Regulation National Market System, is a set of rules adopted by the United States Securities and Exchange Commission in 2005 to modernize the regulatory framework for equity markets in the United States. Its core provisions include the Order Protection Rule, which requires trading venues to honor the best available displayed price across markets, and the Access Rule, which governs fair access to price quotations. Regulation NMS reshaped how stock trades are routed and executed across the fragmented landscape of United States exchanges and alternative trading systems.
Facts
EraSourced to the subject's own account Promulgated BySourced to the subject's own accountU.S. Securities and Exchange Commission. 1 Jurisdiction ScopeSourced to the subject's own accountUnited States federal law, nationwide; equity securities markets. 1 Regulatory DomainSourced to the subject's own accountNational Market System structure for equity securities trading and best-price execution. 1 Classification
Legal StatusSourced to the subject's own account Jurisdiction Scope
Jurisdiction Scope (category)Sourced to the subject's own account Era
Era (category)Sourced to the subject's own account21st Century (2000-Present) 1 Connections
Associated With
MiFID II's market-structure and transparency requirements are the European Union counterpart regularly compared with United States Regulation NMS in comparative securities-market regulation.
Established By
Regulation NMS was adopted by the SEC under Section 11A of the Securities Exchange Act of 1934
In Legal System
United States federal rule, within the common law tradition.
Source Major Legal Systems in the World TodayRene David and John E.C. Brierley
Sources
1. Regulation NMS (Wikipedia)
WikipediaIntroduction
Regulation National Market System (or Reg NMS) is a 2005 US financial regulation promulgated and described by the Securities and Exchange Commission (SEC) as "a series of initiatives designed to modernize and strengthen the National Market System for equity securities". The Reg NMS is intended to assure that investors receive the best (NBBO) price executions for their orders by encouraging competition in the marketplace.
In Group: United States Financial and Securities Statutes and Rules, Introduction, sentence 1
Regulation National Market System (or Reg NMS) is a 2005 US financial regulation promulgated and described by the Securities and Exchange Commission (SEC) as "a series of initiatives designed to modernize and strengthen the National Market System for equity securities".
View the Source Major Legal Systems in the World Today
Rene David and John E.C. Brierley, Stevens and Sons, 1985In Legal System: Law of the United States
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