- Manning rule
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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.
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