SEC issues Final Rule on the Disclosure of Order Handling Information

On Friday, November 2nd, the SEC issued a final rule require additional disclosures by broker-dealers to customers regarding the handling of their orders.  Specfically, the Commission is adding a new disclosure requirement which requires a broker-dealer, upon request of its customer, to provide specific disclosures related to the routing and execution of the customer’s NMS stock orders submitted on a not held basis for the prior six months, subject to two de minimis exceptions and is also is amending the current order routing disclosures that broker-dealers must make publicly available on a quarterly basis to pertain to NMS stock orders submitted on a held basis, and the Commission is making targeted enhancements to these public disclosures.  FIF is forming a working group to assist firms with the implementation of the new disclosure of Order Handling Information rules.