Regulation NMS defines an intermarket sweep order as a limit order for an NMS stock that is identified as such and is routed together with additional orders designed to execute against superior protected quotations. Do not use the term as a generic label for any fast multi-venue order; its meaning is defined by U.S. Regulation NMS conditions.
ReviewedEvidence1 sourceSectionPhrases & Idioms
Quick answer
Use Intermarket Sweep Order for the specific Regulation NMS order type, often abbreviated ISO, with the accompanying simultaneous-routing conditions in the rule.
Key details
Canonical FormIntermarket Sweep Order
Core MeaningRegulation NMS defines an intermarket sweep order as a limit order for an NMS stock that is identified as such and is routed together with additional orders designed to execute against superior protected quotations.
Further guidance
History Boundary
Do not use the term as a generic label for any fast multi-venue order; its meaning is defined by U.S. Regulation NMS conditions.
Meaning
Use Intermarket Sweep Order for the specific Regulation NMS order type, often abbreviated ISO, with the accompanying simultaneous-routing conditions in the rule.
Usage Boundary
Do not use the term as a generic label for any fast multi-venue order; its meaning is defined by U.S. Regulation NMS conditions.
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.
Categorized by Order Size is a current Regulation NMS defined term. This guide keeps the reporting classification tied to the enumerated rule buckets rather than informal size labels.
Categorized by Order Type is a current Regulation NMS defined term. This guide preserves the rule’s specific order-type classification rather than replacing it with a simplified trading glossary.
Under current U.S. Regulation NMS, a “covered order” is a rule-defined class of market and limit orders received by a market center, broker, or dealer under the timing and quotation conditions in § 242.600, subject to stated exclusions. The definition contains timing, NBBO, execution, and special-handling conditions and exclusions; do not reduce “covered order” to every market or limit order.
Under current U.S. Regulation NMS, a “customer limit order” is an order to buy or sell an NMS stock at a specified price that is not for a broker or dealer account, and it includes an order transmitted by a broker or dealer on behalf of a customer. Keep this definition tied to NMS stock, a specified price, and the rule’s express inclusion of orders transmitted by a broker or dealer on behalf of a customer.
Under current U.S. Regulation NMS, a “customer order” is an order to buy or sell an NMS security that is not for a broker or dealer account, subject to the rule’s stated market-value exclusions. Use the § 242.600 definition for rule-scoped analysis. The definition excludes orders meeting the stated market-value thresholds, so it should not be reduced to every order placed for a non-broker/dealer account.
Under current U.S. Regulation NMS, a “directed order” is an order from a customer who specifically instructed the broker or dealer to route it to a particular venue for execution. Use the § 242.600 definition for rule-scoped analysis; the customer’s specific routing instruction is the defining feature, so do not broaden the term to every order a broker routes to a venue.
Executable Stop Marketable Limit Order is a current Regulation NMS defined term. This guide preserves the rule-specific conditions instead of replacing them with informal trading shorthand.
Executable Stop Non-Marketable Limit Order is a current Regulation NMS defined term. This guide preserves the rule-specific conditions instead of replacing them with informal trading shorthand.
