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National Market System Plan (NMSP)

Contents

  1. Deciphering the National Market System (NMSP)
  2. Key Takeaways:
  3. Components of the National Market System Plan
  4. The Intermarket Symbol Reservation Authority (ISRA) Plan
  5. Consolidated Tape System (CTS)/Consolidated Quotation System (CQS)
  6. Over the Counter (OTC) and Unlisted Trading Privilege (UTP) Plan

Demystifying the National Market System Plan (NMSP): Understanding Its Significance in U.S. Securities Trading

The National Market System Plan (NMSP) plays a crucial role in the regulation of securities trading activities across U.S. exchanges. Let's delve into the intricacies of the NMSP, how it functions, and its various components.

Deciphering the National Market System (NMSP)

The NMSP, established by the Securities and Exchange Commission (SEC), serves as a comprehensive framework governing equity securities trading in the United States. Learn about its origins, evolution, and periodic revisions aimed at enhancing market efficiency and transparency.

Key Takeaways:

  1. Regulatory Oversight: Explore how the NMSP regulates key aspects of securities trading, with a particular focus on the selection and administration of stock symbols across all U.S. exchanges.

  2. Legislative Mandate: Understand the legislative foundation of the NMSP, authorized by the U.S. Congress in 1975, and its alignment with Section 11A of the Securities Exchange Act of 1934.

  3. SEC Administration: Gain insights into the role of the SEC in administering the national market system and overseeing the implementation of national market system plans.

Components of the National Market System Plan

The Intermarket Symbol Reservation Authority (ISRA) Plan

Learn about the ISRA plan's objectives to enhance market efficiency and promote fair competition among market participants. Discover how the ISRA facilitates the selection and administration of equity security symbols, crucial for listing and trading activities.

Consolidated Tape System (CTS)/Consolidated Quotation System (CQS)

Explore the functions of the CTS and CQS, managed by the Consolidated Tape Association, in processing equity exchange trade and quote data. Understand their mandatory usage by all major U.S. equity exchanges and options market exchanges.

Over the Counter (OTC) and Unlisted Trading Privilege (UTP) Plan

Delve into the OTC/UTP Plan's role in processing quote and trade data for over-the-counter securities. Learn about the designated UTP processor, the Securities Information Processor (SIP), responsible for consolidating and disseminating quote and trade information.

Unravel the complexities of the National Market System Plan (NMSP) and its significance in U.S. securities trading. Explore its components, regulatory oversight, and the role of the Securities and Exchange Commission (SEC) in administering this vital framework.