What is the purpose of the RegNMS implemented in 2005?

The purpose of Reg NMS, which stands for Regulation National Market System, is to modernize and strengthen the US equity market regulatory structure. Implemented in 2005, it was designed to enhance the transparency and efficiency of the national market system for equity securities. This regulation aimed to improve the overall functioning of the market by addressing issues such as order protection, access to quotes, and the execution of trades across different exchanges and trading venues.

Reg NMS set forth specific rules to ensure that investors receive the best prices available and allowed for the integration of market information across various platforms. It established guidelines to ensure that orders are executed at the best available price, thereby promoting fair competition amongst market participants and enhancing market integrity.

The other options do not align with the key objectives of Reg NMS. While establishing minimum pricing increments is related to market practices, it is not the core purpose of Reg NMS. Enhancing banking regulations and regulating derivatives trading fall outside the scope of this regulation, which is focused specifically on equity markets.