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).
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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Early Implementation of the National Market System Mandate
Many in the industry attribute more recent front-running to the Securities and Exchange Commission's (SEC) 2007 Regulation National Market System (Reg NMS), which intended to address the issues arising from HFT and dark pools.
A natural starting point for our analysis is the passage in 1975 of the Securities Act Amendments, authorizing the SEC to facilitate the establishment of a National Market System for securities.
The company's stock is traded on the Nasdaq national market system under the symbol VCSI.
As of late last year, there were 32 apartment REITs trading on the New York Stock Exchange (NYSE), the American Stock Exchange (ASE), and the NASDAQ National Market System (NASDAQ).
Somnus is headquartered in Sunnyvale, Calif., and its stock is traded on the Nasdaq National Market System under the symbol SOMN.
Logitech International is a Swiss public company traded on the Nasdaq National Market System (LOGIY) and in Switzerland under the symbols LOGN and LOGZ.
SyQuest (SYQT) is publicly traded on Nasdaq's National Market System. The company's Web site is
TCA stock is publicly traded on the Nasdaq National Market System under the symbol TCAT.
As of February 1, 1989, the national market system of the NASDAQ required audit committees for all registered companies.
About 10% of Park Communication's approximately 20 million outstanding shares trade on the NASDAQ National Market System under the symbol PARC.
They invest a fictional $100,000 in stocks on the New York and American exchanges and the NASDAQ National Market System. The entry fee is $18.

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