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.
ReviewedEvidence1 sourceSectionPhrases & Idioms
Quick answer
Under Regulation NMS, a buy is executed outside the quote above the NBO at order receipt, and a sell below the NBB at order receipt.
Key details
Canonical FormExecuted Outside the Quote
Core MeaningFor a buy order, execution at a price higher than the national best offer at the time of order receipt; for a sell order, execution at a price lower than the national best bid at the time of order receipt.
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 “executed outside the quote” using the national best offer for buys and national best bid for sells at the time of order receipt.
Usage Boundary
The benchmark is the quote at order receipt; the term should not be paraphrased as merely executing away from a later or current quote.
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.
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