In November 2000, the Securities and Exchange Commission (SEC) adopted two new rules concerning order execution and routing practices of the securities industry. The combination of these two rules is designed to increase the transparency of the securities markets for investors by requiring the public disclosure of order execution data by market centers and order routing practices of broker dealers who route customer orders to various market centers for execution.
The first rule, SEC Rule 606, requires market centers that execute investor orders to make publicly available monthly reports of standardized statistical measures of execution quality. In order to facilitate comparisons across market centers, the SEC has adopted standardized measures of execution quality such as speed of execution, effective spread, rate of price improvement or disimprovement, and fill rates. Wall Street Access does not make markets in equity securities or trade against our customers' orders, so we are not required to publish the monthly market center reports.
The second rule, SEC Rule 606, is applicable to broker dealers such as Wall Street Access who route customer equity and option orders to various venues for execution. This rule requires such firms to make publicly available quarterly reports that identify the market centers to which a significant percentage of non-directed customer orders have been routed for execution. However, this report only covers equity orders with a market value less than $200,000 and option orders with a market value less than $50,000. In addition, this rule requires the broker dealer to disclose the nature of its relationship with each market center to which it routes orders, including payment for order flow and any profit sharing relationship.
Wall Street Access is pleased to make publicly available the following report that describes our order routing practices in compliance with SEC Rule 606. In accordance with the requirements of SEC Rule 606, the report is divided into four separate sections - equity securities listed on the NYSE, equity securities qualified for inclusion in Nasdaq, equity securities listed on the AMEX, and one for options. Moreover, Wall Street Access selects venues and makes order routing decisions based on the overall ability of each venue to provide our customers' orders with quality executions. Our customers' orders are routed directly to market centers for execution, rather than through a third-party intermediary. As well, we conduct regular and rigorous evaluations of execution quality that includes factors such as execution speed, execution price relative to the overall market, price improvement, liquidity enhancement, fill rates, and print protection.
Public Disclosure of Order Execution Information - SEC Rule 605 of Regulation NMS
Public Disclosure of Order Routing Information - SEC Rule 606 of Regulation NMS
ALL INFORMATION IS PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND. WALL STREET ACCESS, AND ITS AFFILIATES, SPECIFICALLY DISCLAIMS ALL WARRANTIES EXPRESS OR IMPLIED WITH RESPECT TO THE DATA, INCLUDING SPECIFICALLY, BUT NOT EXCLUSIVELY, WARRANTIES AS TO ACCURACY, TIMELINESS, AND COMPLETENESS OF THE REPORTS AND ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT. WALL STREET ACCESS SHALL NOT HAVE ANY LIABILITY FOR ANY INDIRECT, CONSEQUENTIAL, SPECIAL OR DIRECT DAMAGES FOR ANY ACTION OR INACTION WHICH MAY BE TAKEN AS THE RESULT OF THE DATA, WHETHER THE CLAIM BE BASED IN CONTRACT, TORT, OR OTHERWISE.
IN ADDITION, WALL STREET ACCESS IN PROVIDING THE INFORMATION MAKES NO ENDORSEMENT OF ANY PARTICULAR SECURITY OR MARKET PARTICIPANT.
1 A "market center" is defined by SEC Rule 606 to include any exchange market maker, OTC market maker, alternative trading system, national securities exchange, or national securities association. However, market center does not include any of the option exchanges.
2 A "non-directed order" is defined by SEC Rule 606 to include any order where the customer has not specifically instructed the broker dealer to route the order to a particular venue for execution.