Manning rule
Encyclopedia
The Manning Rule is a finance term based on the NASD regulation, NASD IM-2110-2.
The Manning Rule prohibits an NASD member firm from placing the firm's interest before/above the financial interests of a client.
For example, when a securities firm is holding a customer limit order (a limit order is an instruction to buy or sell securities at a certain price), the firm cannot ignore that order.
The firm cannot trade for their account using a price that would satisfy the customer's limit order without executing the customer limit order. The rule is applicable both in normal trading hours and in the extended hours trading
sessions.
The Manning Rule prohibits an NASD member firm from placing the firm's interest before/above the financial interests of a client.
For example, when a securities firm is holding a customer limit order (a limit order is an instruction to buy or sell securities at a certain price), the firm cannot ignore that order.
The firm cannot trade for their account using a price that would satisfy the customer's limit order without executing the customer limit order. The rule is applicable both in normal trading hours and in the extended hours trading
Extended hours trading
After-hours trading is stock trading that occurs after the traditional trading hours of the major exchanges, such as the New York Stock Exchange and the Nasdaq Stock Market. Since 1985, the regular trading hours in America have been from 9:30 a.m. to 4:00 p.m...
sessions.