In addition, in response to feedback received from customers through the public comment process for the proposed changes, Alpha will operate as an unprotected market under the Order Protection Rule
The Order Protection Rule
generally requires that trading centers trade at the best-quoted prices or route orders to the trading centers quoting the best prices.
Specifically, we use data from US equity markets in 2008 to investigate the US Securities and Exchange Commission's (SEC) "Flickering Quote Exception" to the Regulation National Market System (Reg NMS) Order Protection Rule that defines the benchmark price for evaluation of trade throughs and provides a one second look back exception.
Section I provides an overview of the SEC Reg NMS Order Protection Rule and the Benchmark Quote Exception and describes the quote-arbitrage trading strategy.
Thematric and cause examinations focused on trading issues associated with alternative trading systems, information barriers, the SEC's market access rule and amendments to FINRA's order protection rule
At the most basic level, the Reg NMS Order Protection Rule
will require firms to update their order routing rules and put compliance monitoring processes in place.
The ISE Stock Exchange introduced its displayed market on December 8, 2006, and has aggressively added securities in advance of the March 5, 2007 implementation date for the Reg NMS Order Protection Rule
One of the looming questions broker-dealers are pondering is the amount and type of data they will need to produce to demonstrate that they have complied with the order protection rule
and other requirements," said Tim O'Connell, a senior manager with BearingPoint.
NEW YORK -- TABB Group in a new report released today, "The Reg NMS Order Protection Rule
: Preparing for the Impact," says implementing the Securities and Exchange Commission's Regulation NMS Order Protection Rule
611 will have an unprecedented and drastic impact on the equities markets.
Enhancements to our surveillance systems, like the one announced today, enable NASD Market Regulation to protect investors by closely monitoring trading to ensure that firms comply with the SEC's Limit Order Display Rule and the NASD Limit Order Protection Rule
," said Mary Schapiro, President, NASD Regulation.
As the implementation dates for the Order Protection Rule
The NAC also found that by engaging in this type of conduct and violating the NASD's limit order protection rule
, Jawitz abdicated his fiduciary responsibility by not protecting the customers' limit orders.