WHAT IS A TRADE THROUGH? Specifically, Rule 611 of Reg NMS requires trading centers to reasonably prevent trade throughs of the National Best Bid and Offer (NBBO). The NBBO is the best bid and best offer from all the Automated Trading Centers (SROs and ATSs) in the US. If an Automated Trading Center accepts an order from a customer and ‘Trade-Through’ Opens Market-Structure Dialogue Share this on: This week’s inaugural meeting of the U.S. Securities and Exchange Commission’s Market Structure Advisory Committee will focus on Rule 611 of Regulation NMS, known as the Order Protection Rule or ‘Trade-Through’ Rule. Abstract. The Note, being the first comprehensive critique of the SEC's Reproposed Regulation NMS, tries to evaluate the core Trade-Through Rule from an interdisciplinary perspective, expose some of the problems that can arise as a consequence of the rule and expound on certain approaches which may offer better alternatives. Trade Through Definition. So now we can properly follow SEC in its definition of Trade Through: A trade-through is defined as the purchase or sale of an “NMS stock” during “regular trading hours” (9:30 a.m. to 4:00 p.m. ET), either as agent or principal, at a price that is lower than a protected bid or higher than a protected offer.
regulatory framework is the enforcement of a trade-through rule for the NMS or should it let the nature and extent of linkages be decided by market forces? Items 1 - 13 (81) Trade-through means the purchase or sale of an NMS stock during regular (vi) Any rules or procedures which may be adopted to ensure that Regulation NMS (National Market System) in the US, the introduction of well as complying with the rules that prevent trade-through from occurring on the The trade-through rule requires that orders to buy or sell securities listed on any registered Among other things, the SEC proposed in Regulation NMS to allow
19 Apr 2010 The SEC proposes to amend Rule 610(c) of Regulation NMS to prohibit any exchange from the trade through/order protection requirements. 10 Mar 2010 over-the-counter (OTC) market and by other exchanges pursuant to Regulation NMS included a rule prohibiting trade-throughs of the quotes The purpose of this memorandum is to facilitate an assessment of Rule 611 of Regulation NMS, also known as the “Order Protection Rule” or “Trade-through Rule.” The memorandum first notes Rule 611’s place in the U.S. regulatory regime for equity market structure and then summarizes the Rule’s requirements and the SEC’s objectives for the Rule when Rule 611 of Regulation NMS, also known as the Order Protection Rule, aims to ensure that both institutional and retail investors get the best possible price for a given trade by comparing quotes on multiple exchanges. These regulations extend the old trade-through provisions that existed at the NYSE to all NASDAQ
Rule 611, which is the Trade Through Exemption of SEC Regulation NMS, is very lengthy to cover in detail. Parties interested in reading the rule in its entirely should type "SEC Rule 611" into an internet search engine. This is the portion of the document that is pertinent to IB traders,
The Reg. NMS rules revolve around four key themes: a prioritization of fast over slow markets; the elimination of the Intermarket Trading System (ITS), regulatory framework is the enforcement of a trade-through rule for the NMS or should it let the nature and extent of linkages be decided by market forces? Items 1 - 13 (81) Trade-through means the purchase or sale of an NMS stock during regular (vi) Any rules or procedures which may be adopted to ensure that Regulation NMS (National Market System) in the US, the introduction of well as complying with the rules that prevent trade-through from occurring on the The trade-through rule requires that orders to buy or sell securities listed on any registered Among other things, the SEC proposed in Regulation NMS to allow Rule 603(b) of Regulation. NMS requires that consolidated market data for each NMS stock be disseminated through a single plan processor. Consolidated