Regulation NMS
On June 9, 2005 the Securities and Exchange Commission (SEC) issued its release adopting Regulation NMS. Regulation NMS established substantive rules designed to modernize and strengthen the regulatory structure of the United States equities market. View SEC's spotlight on Regulation NMS. In addition, the SEC approved amendments to NASD Rules that align them with Regulation NMS requirements, facilitate oversight, and enhance transparency.
Additional Guidance Regarding the OATS Routing Method Code of I and Special Handling Code of ISO
FINRA Self-Help Email Address
Trade Reporting Facilities (TRFs) and the Alternative Display Facility (ADF) are not considered trading centers or SRO trading facilities under SEC Regulation NMS and its Order Protection Rule. However, the participants in the TRFs and the ADF are considered trading centers and are subject to the self-help exception under the SEC Regulation NMS Order Protection Rule. Therefore, electronic notifications indicating the invocation of the self-help exception should be directed to the trading centers utilizing either the ADF or TRFs and copies of the notifications should be sent to FINRA. In addition, trading centers utilizing either the ADF or TRFs should copy FINRA on any self-help notifications that they receive indicating that the self-help exception has been declared against them and copy FINRA on any electronic notifications sent by them to another trading center indicating the declaration of the self-help exception.
FINRA Self-Help E-mail Address: [email protected]
- FINRA Reminds Member Firms of Obligation to Execute Marketable Customer Orders Fully and Promptly01/21/2022
- FINRA Announces Two New Trade Reporting Modifiers Related to Regulation NMS02/24/2009
- SEC Approves Amendments to FINRA Trade Reporting Rules01/23/2009
- SEC Approves Exemption from the Requirements in NASD IM-2110-2 and NASD Rule 2111 for Certain Regulation NMS-Compliant Intermarket Sweep Orders Effective Date: May 6, 200806/20/2008
- FINRA Amends NYSE Rule 409(f) (Statements of Accounts to Customers) to Eliminate the Requirement to Include the Name of the Securities Market on which a Transaction is Effected12/26/2007
- FINRA Adopts Rule Amendments Relating to Reporting of Odd-Lot Transactions12/13/2007
- SEC Approves Amendments Regarding OATS Routing Method Code for Intermarket Sweep Orders Effective Date: February 4, 200808/30/2007
- NASD Trade Reporting Requirements Related to Regulation NMS05/11/2007
- SEC Approves Amendments to NASD Rules to Align Them with Regulation NMS11/28/2006
- GuidanceAs previously announced in the March 21, 2007 OATS Reporting Technical Specifications, a new Routing Method Code of “I” (Intermarket Sweep Order) became available on June 11, 2007. As of February 4, 2008, the Routing Method Code of “I” will be required in the OATS Route and/or Combined Order/Route Reports for all OATS reportable orders routed to another market center that are identified to the receiving market center as an ISO.July 12, 2007
- GuidanceFINRA Rule 5310 (Best Execution and Interpositioning) requires that, in any transaction for or with a customer or a customer of another broker-dealer, a member and persons associated with a member shall use reasonable diligence to ascertain the best market for the subject security, and buy or sell in such market so that the resultant price to the customer is as favorable as possible under prevailing market conditions.
- GuidanceBelow are links to the central web sites that provide copies of each of the three NMS Plans in which FINRA participates.
- Compliance Tools
The Reg NMS Trade Through Report Card is a monthly statistical report detailing the transactions in NMS Securities that appear to have been reported by your firm to a Trade Reporting Facility ("TRF") or to FINRA's Alternative Display Facility at a price that traded through at least one protected best bid or offer at the respective time of execution. If non-compliance with the Order Protection Rule of Regulation NMS is found to exist, your firm may be found to be in violation of SEC Rule 611 of Regulation NMS.
- GuidanceRule 603 of Regulation NMS (Vendor Display Rule) generally requires broker-dealers to provide a consolidated display of market data for NMS stocks for which they provide quotation information to customers.