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.
ReviewedEvidence1 sourceSectionPhrases & Idioms
Quick answer
Under Regulation NMS, a buy receives price improvement below the NBO at order receipt, while a sell receives it above the NBB at order receipt.
Key details
Canonical FormExecuted With Price Improvement
Core MeaningFor a buy order, execution at a price lower than the national best offer at the time of order receipt; for a sell order, execution at a price higher 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 price improvement relative to the national best offer for buys and the national best bid for sells at the time of order receipt.
Usage Boundary
This defined term uses the national best quote at order receipt; it remains separate from the rule’s distinct best-available-displayed-price comparison.
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.
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.
Price improvement is the opportunity for an order to execute at a price better than the price currently quoted publicly. It is an execution-quality concept tied to a benchmark quote and is an opportunity rather than a guarantee; do not use it as a synonym for effective spread or for every favorable price move after an order is submitted.
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 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.
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.
Price impact measures how much the price of a security changes in response to a trade of a given size. Price impact is a response-to-trade dimension of liquidity; it is not interchangeable with quoted spread or order-book depth.
Actionable Indication of Interest is a current federal securities-regulation defined term. This guide preserves the rule-specific definition and boundaries instead of replacing it with informal market shorthand.
