What regulations apply to trading on NASDAQ?

Trading on NASDAQ is governed by a variety of regulations that ensure transparency, fairness, and efficiency within the market. Primarily, traders must comply with the rules set forth by the Securities and Exchange Commission, often referred to as the SEC. The SEC's regulations include provisions related to market manipulation, insider trading, and reporting requirements for public companies. These regulations are designed to protect investors and ensure that the markets operate without fraud or deceit. In addition to SEC regulations, NASDAQ itself has established a set of rules and guidelines that govern trading activities. These rules cover a wide range of activities including order types, transaction reporting, and market access. NASDAQ's Market Rule 4756, for instance, addresses the guidelines surrounding the types of orders that can be placed on its exchange and the procedures for executing those orders. Moreover, the Financial Industry Regulatory Authority, known as FINRA, plays a crucial role in overseeing brokerage firms and their interactions with the markets, including NASDAQ. FINRA enforces compliance with trading rules and regulations, conducts investigations into potential misconduct, and administers disciplinary actions when violations occur. Traders and market participants on NASDAQ must also be familiar with rules regarding best execution, which require brokers to execute trades in a manner that is most favorable to their clients. Other critical regulatory aspects include monitoring for compliance with the order protection rule, which seeks to protect against price manipulation by ensuring that trades are executed at the best possible prices available across different markets. For those who wish to delve deeper into specific trading regulations applicable to NASDAQ, the official NASDAQ website provides comprehensive resources and contact information that may assist with inquiries. It is important for traders to remain informed and compliant, as regulations can evolve in response to changes in the market landscape.