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Regulation & Compliance

Regulation NMS

Also called: Reg NMS, national market system, order protection rule

Regulation NMS links US equity venues into one national market, requiring orders to be routed to the best displayed price rather than executed worse elsewhere. It cut spreads and fragmented trading across dozens of venues simultaneously. It also created the latency arbitrage opportunity at the centre of the high-frequency trading debate, by making the consolidated quote slower than direct feeds.

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