27. Market Structures and Regulation

In this section

• National Market System (NMS) Overview and Regulation
  Understand the National Market System (NMS), its purpose, and Regulation NMS's role in promoting efficient and fair securities markets. Learn how NMS integrates trading across exchanges for transparency and best execution.
  • Regulation NMS Overview: Key Components and Impact on Trading Practices
    Explore the comprehensive details of Regulation NMS, including the Order Protection Rule, Access Rule, Sub-Penny Rule, and Market Data Rules, and understand their impact on trading practices and market structures.
  • Order Protection Rule: Ensuring Fair Trade Execution in Securities Markets
    Explore the Order Protection Rule (Rule 611) of the National Market System, designed to prevent trade-throughs and ensure best price execution in securities trading. Learn about the National Best Bid or Offer (NBBO), exceptions to the rule, and real-world scenarios demonstrating compliance and violations.
  • Access Rule: Ensuring Fair and Efficient Market Access
    Explore Rule 610 of the National Market System, which ensures fair and non-discriminatory access to quotations, prohibits locked and crossed markets, and imposes fee limitations to enhance market efficiency.
• Alternative Trading Systems (ATS): Enhancing Market Liquidity and Trade Execution
  Explore Alternative Trading Systems (ATS) as non-exchange trading venues that enhance market liquidity and provide investors with alternative avenues for trade execution. Understand the regulatory framework governing ATSs under Regulation ATS and their impact on the securities industry.
  • Electronic Communication Networks (ECNs)
    Explore the role of Electronic Communication Networks (ECNs) in modern securities trading, including their function, benefits, and impact on market dynamics.
  • Understanding Dark Pools in Securities Trading
    Explore the role of dark pools in securities trading, their advantages, concerns, and regulatory oversight. Learn how these private trading venues impact market transparency and fairness.
• Market Manipulation and Surveillance
  Explore the intricacies of market manipulation and surveillance in securities trading, focusing on prohibited practices, detection systems, and regulatory enforcement.
  • Spoofing and Layering in Securities Markets
    Explore the intricacies of spoofing and layering, two manipulative trading practices, and understand their impact on market integrity and regulatory responses.
  • High-Frequency Trading Concerns
    Explore the complexities of high-frequency trading, its benefits, challenges, and regulatory responses in the securities markets.