- Jan
- 25
- 2006
- 10:25 AM
Q&A: Quotes must be "fast" to receive price protection
- By: Ray Pellecchia
- File Under: NYSE
A buy sider posts the following question:
Part of the NMS regulation is the order protection rule. Will we as traders still be able to trade through a manual quote posted by the NYSE? For example, if ABC is quoted at 20 bid for 1000 shares and 20.05 offer with 300 shares, would I be able to trade through (the 20.05 offer) and buy 5000 shares offered at 20.06? When can I cross or trade through? Is it still possible? -- Vince R.
Only automatically accessible or "fast" quotes at the top of each market's book are protected under Reg. NMS. "Manual" or "slow" quotes are not protected and can be traded through. Note, manual quotes will be indicated as such. It is also worth noting that traders still have best-execution obligations under Reg. NMS.
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