Sub-penny quotes and Regulation NMS

[johnnyqpublic]

While perusing the SEC's site for something unrelated, I stumbled upon Regulation NMS, which among other things, "prohibits market participants from accepting, ranking, or displaying orders, quotations, or indications of interest in a pricing increment smaller than a penny, except for orders, quotations, or indications of interest that are priced at less than $1.00 per share." I regularly see sub-penny prints on my platform (thinkorswim) though -- how is this allowed?

 

[d138]

You see sub penny trades, not quotes.

 

[jonnysharp]

Because broker/dealers, and dark pools can trade in sub pennies, they can now sub-penny your order, its a unfair advantage to the privileged and many of us traders are trying to change that.

 

[johnnyqpublic]

So the last trade price is neither representative of an order (or several), or an "indication of interest"?

Quote from d138:

You see sub penny trades, not quotes.

 

[d138]

Yes. And that's exactly what jonnysharp is unhappy about.