Rule 390

Rule 390

A rule on the New York Stock Exchange stating that members must receive permission from the exchange's management before conducting trades on listed securities anywhere other than the trading floor. Rule 390 was rescinded in 2000.

Rule 390

A former New York Stock Exchange rule that stipulated that, unless exempted by the exchange, members must receive permission before trading an exchange-listed security off the exchange floor. Rule 390 was scrapped in 2000 by the New York Stock Exchange under pressure from the Securities and Exchange Commission. Compare Rule 5. See also Rule 19c-3.
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Like NYSE(R) Rule 390 that "imprisoned investor trade execution on the floor of NYSE" and NYSE Rule 500 that "imprisoned issuer listings on the floor of the NYSE", both repealed under pressure, Putnam asserted that current NYSE anti-competitive barriers still exist today, protected by the Inter-Market Trading System (ITS) Plan, its trade through rule and governing administrative policy.
Off-exchange trading The SEC also implemented only modest changes to another potentially anti-competitive feature of the securities markets, NYSE Rule 390.
The NYSE defended Rule 390 by claiming that it prevented the "cream skimming" of uninformed investors' orders; such cream skimming could impair market liquidity.
The exchange voted in December to abolish its Rule 390 which hampered trading of NYSE stocks on other venues, such as BRUT.
The removal of NYSE Rule 390 (which prevented NYSE stocks from being traded off the NYSE) and ongoing evolution of technology are creating new options and making trading off the exchange floor an inviting prospect for broker/dealers," said Erich Buckenmaier, director of Nasdaq InterMarket.
We also support Nasdaq's efforts to bolster the Third Market as a viable competitor to the NYSE for the trading of listed securities, particularly in light of the pending elimination of Rule 390.
announced today its support for the New York Stock Exchange's decision to repeal Rule 390, which restricted NYSE members from trading listed stocks off an exchange floor.
Island applauds SEC Chairman Arthur Levitt for initiating this campaign to abolish Rule 390.
based electronic communications network (ECN) for trading stocks, today reacted to the rule change to rescind the New York Stock Exchange's Rule 390 and the U.
We strongly support the long over-due repeal of Rule 390.
2 /PRNewswire/ -- Instinet applauds the board of the New York Stock Exchange's courage in eliminating Rule 390.