National Best Bid and Offer

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National Best Bid and Offer

An SEC regulation stating that brokers are required to seek the best possible price for their customers. This means that brokers may not find less favorable prices in order to extract a higher commission. See also: Fiduciary Responsibility.
References in periodicals archive ?
One study found that, for orders involving less than 400 shares, 60 percent of all NYSE stock trades that occurred when the NBBO spread was one-quarter of a point were executed within the NBBO spread.
We find that as the distance in cents between the NBBO Ask (Bid) and Benchmark Ask (Bid) increases, relatively more exchanges quote at Benchmark Compliant Prices.
In the OLM data, NBBO is defined as: The sum of time the exchange is both best bid and best offer (across only symbols quoted by the exchange) divided by the sum of time those symbols have a best bid/offer during the trading day.
First, trades are matched with the prevailing NBBO quotes using a five-second differential.
FINRA found that Bunda entered over 4,000 small share orders through his trading account at Great Point Capital LLC, his employer, to improve the NBBO for a Nasdaq security.
com), a leading provider of ultra-low latency trading solutions, announced the InRush([TM]) NBBO, an innovative solution for calculating the National Best Bid and Offer for the U.
Liquidnet H2O provides price improvement to both the buyer and seller on all trades, as all trades in Liquidnet H2O are executed at the midpoint of the highest displayed bid and lowest displayed offer in the national market, or NBBO.
Deep Book(TM) enables transparency beyond the NBBO (National Best Bid and Offer), providing options traders with the same trading efficiencies provided by leading-edge equities trading systems.
Launched Auto-Trading, Pre- and Post-Market Trading and NBBO Guarantee
Liquidity providers are rewarded based on their continuous daily quoted size at the NBBO in the securities for which they are registered CLPs.
50 Rebate Per Contract for Members That Set NBBO as Part of New Pricing Effective January 3, 2011
The planned BATS RPI program is designed to provide material price improvement for retail orders sent to the BYX Exchange by executing incoming retail orders against retail price improving orders and all other liquidity that improves upon the NBBO.