Trade Through Rule
The Trade Through Rule, part of Regulation NMS (Reg NMS) and its Order Protection Rule, prohibits trades from executing at prices worse than the best displayed price available across all protected venues (the NBBO) when a better price is accessible.
Example: A broker routes an order for 100 shares of XYZ to the venue displaying the best NBBO quote to avoid a trade at a price worse than the displayed best price.
💬 Comments