National Market System


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National Market System (NMS)

Refers to over-the-counter trading. System of trading OTC stocks under the sponsorship of the NASD. Must meet certain criteria for size, profitability and trading activity. More comprehensive information is available for NMS stocks than for non-NMS stocks traded OTC (high, low, and last-sale prices, cumulative volume figures, and bid and ask quotations throughout the day). This is due to the fact that market makers must report the actual price and number of shares in each transaction within 90 seconds verses nonreal-time reporting for non-NMS stocks (thus, last sales prices and minute-to-minute volume updates are not possible).

National Market System

A trading system listing securities that trade in both New York and on regional exchanges. This allows investors to find the best price available for securities. The NMS also facilitates trading of certain over-the-counter stocks. It is sponsored and managed by NASDAQ and FINRA. See also: 19c-3 stock.

national market system (NMS)

1. A centralized system for reporting transactions and quotations from all qualified market makers. A national market system has been encouraged by the SEC as a trading system that would increase competition among exchanges and market makers, thus providing investors with more liquidity and better prices. Essentially, a national market system is envisioned as a single large market in which market makers are linked by telecommunications with information being freely available. Customer orders would be automatically filled at the best available prices.
2. See Nasdaq.

National Market System (NMS).

The National Market System (NMS) links all the major stock markets in the United States and was developed to foster competition among them.

Federal rules require these trading centers to ensure that transactions are executed at prices at least as good as protected quotations displayed at another center. A protected quotation is one that's immediately and automatically accessible.

References in periodicals archive ?
Forward-looking statements include statements regarding the timing of the Company's planned move to the NASDAQ National Market System and the Company's belief that the move will give its stock greater visibility and will attract a broader range of investors.
We felt our shareholders would benefit by the improved liquidity of the national market system over the bulletin board or smallcap systems, so we chose to wait," said Access CEO Michael Clarke.
NASDAQ: SRLS), an innovative developer and provider of human and animal based diagnostic, therapeutic, and research products for the life science industry, today announced it has received approval from The Nasdaq Stock Market to list the Company's shares on its National Market System.
The exact timing will depend upon processing of the transaction by the Washington Secretary of State and the Nasdaq National Market System.
Factors that could affect Onyx's actual results include, but are not limited to the processing of the transaction by the Washington Secretary of State and the Nasdaq National Market System and the "Important Factors That May Affect Our Business, Our Results of Operations and Our Stock Price" described in our quarterly report on form 10-Q for the period ended March 31, 2003.
I-Flow Corporation (NASDAQ:IFLO) announced today that its common stock will begin trading on the NASDAQ National Market System tomorrow, July 23, 2003.
He served as the Exchange's representative to joint industry associations relating to National Market System facilities such as the Consolidated Tape Association, the Intermarket Trading System and the Options Price Reporting Authority.
AirNet Communications Corporation (Nasdaq:ANCC), the technology leader in software defined base station products for wireless communications, announced that on April 9, 2003, it received notice of a determination by Nasdaq's Listing Qualifications Staff that AirNet had failed to comply with the minimum bid price for continued listing set forth in Marketplace Rules 4450(a)(5) and that AirNet's common shares were therefore subject to delisting from the Nasdaq National Market System.
Offers a Comprehensive Solution to the Financial Services Industry to Meet the Rigorous Demands Of Regulation National Market Systems.

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