What minimum price increment, if any, will apply to orders, quotations, and indications of interest in stocks other than NMS stocks?
No SEC Rule establishes a minimum price increment for orders, quotations, or indications of interest in non-NMS stocks. However, the NASD has filed a proposed rule change (SR-NASD-2005-095) that, if approved, would impose substantially the same requirements as SEC Rule 612 on members trading equity securities other than NMS stocks in the over-the-counter market. Question 17: If a broker-dealer uses a service bureau or other vendor to provide order handling services on its behalf, does the vendor have to provide the same capabilities to reject or round orders that the broker-dealer would have to provide for itself, or can it rely on the market centers to reject and/or round orders not permitted under the Rule? Answer: The obligation to comply with the Rule lies with the broker-dealer. If the broker-dealer employs a vendor or facility manager to provide its order handling capabilities, then the vendor or facility manager must follow the requirements of the Rule, or the broker-dealer will
Related Questions
- I was able to receive information on a handset price, but when I proceeded down to the HELLO!Shop, there were no more stocks. Why is this so?
- May an exchange also accept and round orders in NMS stocks that are explicitly priced in sub-penny increments above $1.00?
- Does every market trading NMS stocks have to accept sub-penny orders priced less than $1.00?
