National best bid and offer
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National Best Bid and Offer (NBBO) is a term used in United States Securities and Exchange Commission regulations. Brokers are required to execute customer trades at the best available ask price when buying securities, and the best available bid price when selling securities.
To qualify for consideration, a quote must be issued by the primary (NYSE) specialist and be BBO-eligible, that is, be eligible for inclusion in the National Association of Security Dealers (NASD) Best Bid and Offer calculation.
- Lee, Charles; Mark J. Ready (Jun 1991). "Inferring Trade Direction from Intraday Data". The Journal of Finance. 2 46: 733–746.
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