Rule 606 Compliance Reporting
REG NMS Compliance Reporting
On November 2, 2018 the SEC adopted amendments requiring additional disclosures, including
- Disclosure of Not Held Routing and Execution Information
- For Not Held Orders, disclosure of liquidity (maker/taker) information
- Information on Marketable vs. Non-Marketable Limit Orders
- Disclosure of Net Commissions, Rebates and Fees Received
In November 2000 the Securities and Exchange Commission adopted Rule 606 (formerly 11- Ac1-6) which requires broker dealers that route customer orders in covered US national market system securities (Reg NMS) for equities and options to make publicly available quarterly reports that, among other things, give a general overview of their routing practices and identifies the top executing venues in which non-directed customer orders are routed to for execution. Broker dealers will also be required to disclose to customers, on request, the venues to which their individual orders were routed.
The adoption of this rule is intended to increase the visibility of where orders are being routed to for execution and allow for public investors to see whether or not their orders are being routed to market centers providing the best possible price. In addition, firms will have to disclose the material aspects of their relationship with specific venues if they receive payment for order flow. BestXstats assists firms in complying with their regulatory Rule 606 obligation with a web based tool that will allow firms to view the different order types (Market, Limit, Other) routed to various destinations separated by each category: NYSE Securities, Nasdaq Securities, NYSE AMEX/ Regional and Listed Options.
