A quantity set per security by the London Stock Echange; the minimum size of transactions up to which market maker quotes must be good for.... more on: Normal market size
This is the maximum number of shares in which you can trade in one transaction, and be guaranteed to get a price between the indicated bid and offer prices.
A value assigned to a security by the Exchange. The NMS indicates the liquidity of that security. For quote-driven securities, the NMS is used to calculate the minimum quote size within which market makers are obliged to trade.
A system that categorizes the size of transactions that are normal for a particular security and forces market makers to deal within these sizes.
The amount that can be traded on a typical market price quote.For shares this is calculated on the previous year's average daily turnover of each individual stock - currently 2.5% of the total volume of shares for each company. Market makers are not obliged to provide a quote for a transaction above normal market size.
As defined by the London Stock Exchange, the percentage of an individual company's stock for which a market maker is obliged to provide a quote. NMS is normally 2.5 percent of the total volume of shares for the company in question and market makers are not obliged to provide a quote for any transaction of a size in excess of the NMS.
The SEAQ classification system that replaced the old alpha, beta, gamma system. NMS is a value expressed as a number of shares used to calculate that minimum quote size for each security.
Each listed company is allocated a NMS on the basis of the level of trading in the company's shares. The more active the trading, the higher the NMS. Obligations of market makers and other facets of market regulation are set by reference to the NMS.
Minimum size in which market makers must quote on LSE.
A value expressed as a number of shares used to calculate the minimum quotation size for UK domestic equities and ADRs traded on the London Stock Exchange. The NMS values, which range from 500 shares to 200,000 shares, are based on each individual stock's average market turnover value in the previous 12 values.
A share classification system that replaced the October 1986 alpha, beta, gamma, delta system in January 1991. The NMS system has twelve categories based on the size of transactions in which market makers are obligated to deal.
A share classification structure based on the number of shares outstanding. This determines the number of shares that a market maker can trade at the quoted price.