National Market System (NMS)

The National Market System (NMS) is a set of rules and regulations that govern the trading of securities in the United States. It was created in 1975 with the goal of creating a more efficient and transparent market for investors.

The NMS is overseen by the Securities and Exchange Commission (SEC). It includes all stock exchanges and other trading venues that are registered with the SEC. The NMS also includes the over-the-counter (OTC) market, which is where securities are traded that are not listed on a stock exchange.

The NMS has a number of rules and regulations that are designed to protect investors. These rules include requirements for market makers to make bids and offers for securities, rules for trading halts, and rules for disclosure of information about securities.

The NMS has also been credited with making the trading of securities more efficient. By creating a single market for all securities, the NMS has made it easier for investors to trade securities and has helped to reduce the cost of trading.

The NMS is a complex system, but it plays an important role in the U.S. securities markets. It helps to ensure that investors have access to a fair and efficient market for trading securities.

Here are some additional details about the NMS:

* The NMS is divided into two parts: the trading system and the communications system. The trading system is responsible for matching buyers and sellers of securities. The communications system is responsible for transmitting information about securities trades.
* The NMS is operated by a number of different organizations, including the SEC, the stock exchanges, and the OTC market.
* The NMS is constantly evolving. The SEC is constantly working to improve the NMS in order to make it more efficient and transparent.

The NMS is a critical part of the U.S. securities markets. It helps to ensure that investors have access to a fair and efficient market for trading securities.