What is NMS regulation?

NMS regulation is a set of regulations that control the system of the national market, which is a system designed to facilitate trade with certain partitions (OTC). The aim of NMS regulation is to improve NMS through justice in determining prices and price list. The four main rules are NMS regulation. The order protection rule and the approach rule cooperate on support for equal access to price information, while the Sub-Penny rule controls the method of securities and the rules for market data allocate agencies based on the value of their trades.

The national market system deals with OTC securities. These securities are sold on a decentralized market and do not deal with the stock exchange. Instead, securities are traded through retailers who have their supplies. The NMS is sponsored by both the National Sealers Association (NASD) and Nasdaq.

Rule 610 NMS regulation is an access rule. This requires Fair's business devices and equal access to prices information. PRAvidal also sets the limits of fees associated with quotations. If the price per share is $ 1 dollar (USD) or more and fees must not exceed $ 0.003 per share. If the price is less than $ 1, fees cannot be higher than 0.3 percent per share.

The

order protection rule is sometimes known as rule 611. It requires that when investors buy security on one stock exchange, they get it at the same price as traded on other stock exchanges. The rule also requires that each exchange will create and enforce policy to make sure that this will happen. The predecessor of the order protection rule was known as the rule for the course. He had many exceptions that allowed changes in prices on certain types of shops.

NMS regulation Rule 612 is known as a partial penny rule. It sets minimum prices for securities. Price trading with securities over $ 1 must be roundedEno to the nearest penny. If security is traded for less than $ 1, the minimum price increase is $ 0.0001.

The rest of the 371 NMS Regulation deals with how the information should be distributed and how income will be assigned. Brokers and market centers can release their own data independently, but still have to distribute their best quotes and shops through official channels. Markets will gain income based on the value of citations and trades provided to investors. Those with the best prices and the largest orders will receive the most money.