Executed Outside the Best Available Displayed Price
Executed Outside the Best Available Displayed Price is a current Regulation NMS defined term. This guide preserves the rule-specific benchmark and direction instead of replacing it with informal trading shorthand.
ReviewedEvidence1 sourceSectionPhrases & Idioms
Quick answer
Under Regulation NMS, a buy is executed outside the best available displayed price when it executes above that benchmark, and a sell when it executes below it.
Key details
Canonical FormExecuted Outside the Best Available Displayed Price
Core MeaningFor a buy order, execution at a price higher than the best available displayed price; for a sell order, execution at a price lower than the best available displayed price.
Further guidance
History Boundary
This page reflects the current reviewed 17 CFR § 242.600 definition and should be rechecked if Regulation NMS changes.
Meaning
17 CFR § 242.600 defines the term by comparing a buy execution above, or a sell execution below, the best available displayed price.
Usage Boundary
The comparison is to the rule-defined best available displayed price, which is not automatically identical to the national best quote in every case.
Sources and evidence
Sources are shown with the role they play in this guide. Historical or style-sensitive claims are kept within the evidence boundary described above.
Executed With Price Improvement Relative to the Best Available Displayed Price is a current Regulation NMS defined term. This guide preserves the rule-specific benchmark and direction instead of replacing it with informal trading shorthand.
Regulation NMS defines best available displayed price by comparing the national best quote with the best disseminated odd-lot order on the relevant side, with a timing rule for midpoint-or-better limit orders. This is a U.S. Regulation NMS term with side- and timing-specific conditions; do not reduce it to a generic synonym for the best visible market price.
Executed Outside the Quote is a current Regulation NMS defined term. This guide preserves the rule-specific benchmark and direction instead of replacing it with informal trading shorthand.
Executed With Price Improvement is a current Regulation NMS defined term. This guide preserves the rule-specific benchmark and direction instead of replacing it with informal trading shorthand.
Under current U.S. Regulation NMS definitions, best bid and best offer mean the highest-priced bid and the lowest-priced offer. Treat this as a U.S. securities-regulation definition. Do not collapse it into the NBBO concept or generalize it to every use of best price outside this rule context.
Executed at the Quote is a current Regulation NMS defined term. This guide preserves the rule-specific conditions instead of replacing them with informal trading shorthand.
Make Publicly Available is a current Regulation NMS defined term. This guide preserves the specific U.S. securities-rule scope instead of substituting an ordinary-language meaning.
The National Best Bid and Offer (NBBO) is the U.S. national-market benchmark formed from the highest displayed bid and the lowest displayed offer used in the applicable NMS framework. NBBO is a U.S. market-structure term and should not be generalized into a universal global best-price concept or confused with one venue’s local best bid and offer.
