Traders Magazine Online News, November 6, 2018 John D'Antona Jr. The brokers will have to open up their book just a little bit more these days. The Securities and Exchange Commission recently passed amendments to Rule 606 of Reg NMS that require the sell-side to disclose more information about how they handle, route and treat orders and what they might be getting paid for those decisions. Score one for more transparency for the buy-side and retail investor. As first reported by ThinkAdvisor, the amended rule Rule 606(b)(3) requires a broker, upon a request of a customer who places a “not held” order (e.g., an order in which the customer gives the firm price and time discretion), to provide the customer with a standardized set of individualized disclosures concerning the firm’s handling of the customer’s orders, the agency explains. The amendments will be out for a 60-day comment period. To view the SEC release in full, please click here It was also reported that SEC Chairman Jay Clayton said in announcing the amended rule that “in the 18 years since the Commission originally adopted its order handling and routing disclosure rules, technology and innovation have driven significant changes in the way that our equities market functions and investors transact.” The rule amendment “will make it easier for investors to evaluate how their brokers handle their orders and ultimately make more informed choices about the brokers with whom they do business.” For the complete story, please click here For more information on related topics, visit the following channels:
The US Securities and Exchange Commission (SEC) is calling for brokers to disclose more information about how they handle investors’ orders. In a letter sent on Monday to the heads of brokerages in New York, it said that “investors should be able to make informed decisions when investing their money through broker-dealers or other financial The amendment aims to make it easier for investors to make informed decisions about brokers with which they do business, and how those brokers deal with their orders.