What is Regulation NMS?
The Securities and Exchange Commission have adopted rules under Regulation NMS and two amendments to the joint industry plans for disseminating market information. In addition to re-designating the national market system rules previously adopted under Section 11A of the Securities Exchange Act of 1934 (Exchange Act), Regulation NMS includes new substantive rules that are designed to modernize and strengthen the regulatory structure of the U.S. equity markets. First, the Order Protection Rule requires trading centers to establish, maintain and enforce written policies and procedures reasonably designed to prevent the execution of trades at prices inferior quotations displayed by other trading centers, subject to an applicable exception. To be protected, a quotation must be immediately and automatically accessible. Second, the Access Rule requires fair and non- discriminatory access to quotations, establishes a limit on access fees to harmonize the pricing of quotations across different
