![nms securities nms securities](https://www.finra.org/sites/default/files/2020-07/3-1-NMS-Trading-Venue.png)
equities markets from single trading systems to a large number of trading centers that include stock exchanges and ATS that are electronically linked. When the SEC adopted Regulation NMS in 2005, it facilitated the transition of U.S. Sponsors of ETFs will have the opportunity to comment on the proposed Pilot prior to its launch. Any rule changes that flow from the Pilot will impact ETFs on the most basic level: the liquidity and quality of execution of ETF shares as well as the equity shares owned by the ETF. The exchanges and ATS will collect and publicly disseminate data on the impact of the three pilots, which will be studied by the SEC and industry participants with the goal of improving pricing, liquidity and trade execution quality. The Pilot will subject stock exchange transaction and alternative trading systems (ATS) fee pricing, including “maker-taker” fee-and-rebate pricing models, to new temporary pricing restrictions across three test groups. NMS, the national system for trading stocks in the United States, includes all of the major stock exchanges and other facilities and entities used by broker-dealers to fulfill trade orders for securities, including ETF shares. On March 14, 2018, the SEC proposed Rule 610T of Regulation NMS to conduct a transaction fee pilot program (Pilot) involving National Market System (NMS) stocks. Pilot program will generate reams of data on how ETF shares trade and orders are routed.ETF industry should pay closer attention to NMS structure issues.
![nms securities nms securities](https://m.media-amazon.com/images/I/71uZwgc9nMS._AC_SL1500_.jpg)
Changing exchange and ATS pricing model would directly impact how ETF shares trade.