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 Cross-Tradition Connections
In Legal System
United States federal rule, within the common law tradition.
Sources
1. Regulation NMS (Wikipedia)
WikipediaLead paragraph (era)Quote, Lead paragraph (era)
Regulation National Market System 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. Some contend that the rule has contributed to the rise of high-frequency trading, which is sometimes regarded as controversial.
1. Regulation NMS (Wikipedia)
WikipediaLead paragraph (promulgated-by)Quote, Lead paragraph (promulgated-by)
Regulation National Market System 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. Some contend that the rule has contributed to the rise of high-frequency trading, which is sometimes regarded as controversial.
1. Regulation NMS (Wikipedia)
WikipediaLead paragraph (jurisdiction-scope)Quote, Lead paragraph (jurisdiction-scope)
Regulation National Market System 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. Some contend that the rule has contributed to the rise of high-frequency trading, which is sometimes regarded as controversial.
1. Regulation NMS (Wikipedia)
WikipediaLead paragraph (regulatory-domain)Quote, Lead paragraph (regulatory-domain)
Regulation National Market System 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. Some contend that the rule has contributed to the rise of high-frequency trading, which is sometimes regarded as controversial.
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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