limit order display rule

Limit Order Display Rule

A rule stating that market makers must include limit orders with better prices than those the market makers are bidding or asking to be included in market maker quotes. The limit order display rule helps improve investors' access to the best available prices.

limit order display rule

An SEC requirement that better-priced customer limit orders (higher bid or lower ask) be included in market maker quotes. This rule improves transparency by allowing market participants to view and access the best available price.
References in periodicals archive ?
The first rule, known as the "Limit Order Display Rule," was phased-in for all NASDAQ National Market System issues between January 20, 1997 and October 13, 1997.
NASDAQ dealers are more likely to improve prices with a smaller tick size because the Limit Order Display Rule subjects them to competition from limit order traders.
If the ASR stocks exhibit a significant reduction in spreads but the non-ASR stocks exhibit no change in spreads at all, the difference in spread changes between the OHR and non-OHR stocks could be attributed entirely to the ASR rather than the Limit Order Display Rule.