- NMS
- IRefers to over-the-counter trading. System of trading OTC stocks under the sponsorship of the NASD. Must meet certain criteria for size, profitability and trading activity. More comprehensive information is available for NMS stocks than for non-NMS stocks traded OTC ( high, low, and last-sale prices , cumulative volume figures, and bid and ask quotations throughout the day). This is due to the fact that market makers must report the actual price and number of shares in each transaction within 90 seconds verses nonreal-time reporting for non-NMS stocks (thus, last sales prices and minute-to-minute volume updates are not possible). Bloomberg Financial DictionaryIIA system that categorizes the size of transactions that are normal for a particular security and forces market makers to deal within these sizes. Bloomberg Financial Dictionary————See normal market size. Dresdner Kleinwort Wasserstein financial glossary————normal market size (NMS)A value expressed as a number of shares used to calculate the minimum quotation size for UK domestic equities and ADRs traded on the London Stock Exchange. The NMS values, which range from 500 shares to 200,000 shares, are based on each individual stock's average market turnover value in the previous 12 values. Exchange Handbook Glossary————normal market size (NMS)A value assigned to a security by the Exchange. The NMS indicates the liquidity of that security. For quote-driven securities, the NMS is used to calculate the minimum quote size within which market makers are obliged to trade. London Stock Exchange Glossary
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NMS UK US noun STOCK MARKET► THE NATIONAL MARKET SYSTEM(Cf. ↑the National Market System)
Financial and business terms. 2012.
