Sell-Side Services
SEC Rule Reporting
605/606 Best Execution Regulatory Services
Abel Noser has developed a reputation for being the most dependable provider of best execution regulatory services in the industry. As pioneers in the analytics and trade measurement space, we understand the entire transaction lifecycle like no other firm. Our deep experience enables us to provide you with a systematic and well thought-out approach to help you with your best execution and regulatory responsibilities.
Abel Noser’s SEC rule 606 services include:
- Online posting of 606(a)(1) reports on customized company page
- On-demand or scheduled 606(b)(3) reports
- Easy-to-use analytics interface
- TCA-generated contextual data to show order handling best execution
- Unparalleled client services team to help manage the process
We can also provide data and posting services relating to SEC Rule 605 and FINRA Rule 3310.
606 Reports with Contextual TCA Data Adds Real Value
Without accompanying execution benchmarking, the fee/rebate data required by Rule 606 may do little to reveal how well a broker navigates a complex market structure. Details on fees and rebates can be particularly misleading without any accompanying context. This is particularly true with the IOI data, which is reported on an aggregate basis with little connection to execution results. This is why Abel Noser can also provide TCA-generated data with client requested reports to show a more complete best execution story.
To learn more, read our related article or reach out to us at 646.432.4066 or email info@abelnoser.com.
Dynamic, easy-to-read trade and routing data within our Trade Zoom interface
2020 SEC Rule 606 Revisions
The Securities and Exchange Commission (SEC) Rule 606 has been dramatically revised in an ongoing effort to ensure that broker-dealers act in the best interest of their clients. All brokers who handle order flow are expected to be compliant with these updated rules requiring new and enhanced information about the way investors' orders are handled.
Basic Overview
The new broker-dealer SEC 606 requirements for “not-held” orders are dramatically more complex than the existing version and include an expanded public-facing report along with a new mandate to, within 7 days of request, provide clients with six months of historical execution reports that need to include:
- Execution by venue for S&P 500 and non-S&P 500 members
- IOI information
- Fee/rebate and incentive structure disclosures by venue
- Parent order information
- Route venue detail in addition to execution venue
- Order handling by type and duration
Details of note:
- 606(b)1 revised de minimis considerations have effectively eliminated previous exemptions at the broker level
- Fee/rebate data is to be taken from broker's actual invoices (not projected/estimated) and must include any commissions an introducing broker pays to an executing broker/venue
- Brokers to provide six months of data back from most recently completed data, then fill in as more becomes available – meaning intra period updates are necessary
HELPFUL SEC LINKS
READ THE 2018 SEC 606 PRESS RELEASE>
READ THE 2019 SEC EXTENSION NOTICE>
READ SEC RESPONSES TO FAQS REGARDING RULE 606>
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