The Definitions Regulation NMS Runs On

What this video covers

• Why an NMS security includes listed options, why an NMS stock excludes options, and why the limit order display, order protection, and sub-penny rules reach only NMS stocks
• The five conjunctive requirements for an automated quotation, including immediate-or-cancel (IOC) handling, automatic cancellation, sender response, and quote updates
• How an automated trading center differs from a manual quotation, including quote identification, system capability, and fair switching standards
• The three requirements for a protected quotation, and why only the best bid or best offer receives protection, not depth-of-book prices
• Why tied best bids rank by size first and time second
• How market centers and trading centers differ, including why a display-only exchange facility does not create trading center duties
• Round-lot tiers, block-size alternatives, and the distinction between a customer limit order and a standard customer order