abstract:Regulation National Market System (or Reg NMS) is a US financial regulation promulgated and described by the United States Securities and Exchange Commission (SEC) as "a series of initiatives designed to modernize and strengthen the National Market System for equity securities."
In 2005, the SEC adopted RegulationNMS, aimed at opening up stock trading to greater competition and ending the duopoly of the New York Stock Exchange and Nasdaq Stock Market.
And this week it won a major victory when the U.S. Securities and Exchange Commission voted (albeit narrowly) to approve RegulationNMS, which includes new trade-through-rules that require execution of orders even if it means going to rival exchanges to do so.
The Order found that the NYSE violated Rule 603(a) of RegulationNMS and the record retention provisions of Section 17(a)(1) of the Securities Exchange Act and Rule 17a-1, and NYSE Euronext, which supplied the personnel responsible for these systems and compliance, caused the violations.