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 Rule 390 was rescinded in 2000.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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References in periodicals archive ?
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.
In December, the New York Stock Exchange agreed to eliminate Rule 390, which prevented NYSE member firms from trading anywhere but on the Big Board.
Allowing NYSE members to trade on electronic networks by abolishing Rule 390 is a significant step, but other industry practices must go as well.
The exchange voted in December to abolish its Rule 390 which hampered trading of NYSE stocks on other venues, such as BRUT.
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.