To make both the execution quality of the securities markets and order routing performance of brokerage firms available to the public, the Securities and Exchange Commission (SEC) adopted Rule 605 and Rule 606.
- Rule 605 -- Market centers that trade national market system securities and options must publicly disclose uniform statistical measures of order execution quality on a monthly basis. The measures should include, but are not limited to, how market orders of various sizes are executed relative to the public quotes and information about spreads paid by investors.
- Rule 606 -- Broker/dealers must make quarterly reports available to the public, disclosing their order routing practices for orders that are not directed to specific exchanges and trading venues.
SEI Investments Distribution Co. (SIDCO) is not a market center, so it is not subject to Rule 605 reporting. However, because SIDCO routes orders to executing and clearing firms who further route the orders to the trading venues, it is adopting the executing and clearing firm’s Rule 606 Order Routing Disclosure, since it fairly represents the routing statistics customers can expect with a standard order.
The following list includes Rule 605 execution quality and Rule 606 order routing disclosure information for the brokerage firms SEI Brokerage has available. Money managers can obtain statistics regarding the quality of the executions they are receiving from the firms where they direct transactions, as well as obtain the order routing disclosure information for those firms.
Industrial and Commercial Bank of China Financial Services LLC
Virtu ITG, LLC
Citigroup Global Markets Inc.
Rule 605 (Select Company Name: SBSH-Citigroup Global Markets)
Rule 606 (PDF) (Select Broker/Dealer: Citigroup Global Markets 1-6)
J.P. Morgan Securities LLC
Rule 605 (Select Company Name: JPMS)
Rule 606 (Select Broker/Dealer: JP Morgan Securities)
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Rule 606 (PDF)
Weeden & Co., LP