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 Rule 390 was rescinded in 2000.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.

Mentioned in ?

Rule 5

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 rule proscribed NYSE members from trading NYSE stock off-exchange (in the third market) as principals.

The NYSE defended Rule 390 by claiming that it prevented the "cream skimming" of uninformed investors' orders; such cream skimming could impair market liquidity.

A growing market: rapid financial innovation over the past quarter-century is testing the traditional regulatory framework. (Securities & Investment)

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.