SEC Rule 606 Working Group - Overview

On November 2, 2018, the Securities and Exchange Commission published a Final Rule requiring industry members to engage in several changes with respect to SEC Rule 606. Specifically, Amended Rule will require a broker-dealer, 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 new disclosures will, among other things, provide the customer with information regarding the average rebates the broker received from, and fees the broker paid to, trading venues.

The Commission also adopted two exceptions designed to minimize the implementation costs of the new disclosure requirement on the broker-dealer industry, particularly small broker-dealers. The rule also includes enhancements to the quarterly public reports that broker-dealers are already required to publish.

The FIF Rule 606 Working Group will assist industry members in meeting the implementation-related requirements of the Amended Rule.

© 2024 Financial Information Forum

Press enter to search
Press enter to search

Interested in joining us?

Download membership kit

Key Reasons to Join

  1. Stay informed on Current Regulatory and Market Initiatives
  2. Drive Industry Issues to Successful Resolution
  3. Impact the implementation timing and methodology of new rules
  4. Apply FIF Insight Within Your Firm