If the last sale price of an NMS stock is below $1.00, may a broker-dealer accept an order to sell at $1.001?
No. The Rule’s prohibition on sub-penny orders above $1.00 applies to the price of the order, not the price of the stock. Therefore, an order priced at $0.9999 is permissible at any time and an order priced at $1.001 is impermissible at any time, regardless of where the stock is trading at the moment. However, note that a sub-penny order below $1.00 that is permissible under the Rule may not be permissible under the rules and procedures of every market center.
Related Questions
- If a broker-dealer holds an open order in an NMS stock that must be repriced because of a corporate action (e.g., a stock dividend), may the broker-dealer round the adjusted price to a permissible increment?
- May a market center provide sub-penny price improvement, compared to the NBBO, in an NMS stock for which sub-penny quotations are prohibited by the Rule?
- Does everything sell for half price at the half-price sale?
