New NASDAQ trading rules

The National Association of Securities Dealers Automated Quotation (NASDAQ) is about to become a fairer market for individuals, thanks to rules approved by the Securities and Exchange Commission in the U.S.

Under one of the rules, securities firms will not be allowed to trade ahead of a customer’s limit order (the specific price requested by the investor for a buy or sell). This practice, which allows the securities firms to profit from information not yet made public, is not permitted by the New York Stock Exchange (NYSE).

Orders that dealers receive from other firms will not be subject to this rule. The over-the-counter stock market saw its trading volume rise 37% to a record 66.5 billion trades in 1993, second only to NYSE.

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