New York, NY  March 7th, 2024| Yesterday on March 6^th the SEC announced that it adopted amendments to Rule 605. These amendments significantly expand the scope of entities that will be subject to Rule 605 based on the total number of accounts they carry or introduce. Broker-Dealers operating Single Dealer Platforms must also prepare separate reports for activity specific to each platform. Additional changes expand the scope of “Covered orders” under Rule 605 to include orders placed outside of normal trading hours, orders with stop prices, non-exempt short-sale orders and Non-Marketable orders with stop prices that become marketable during normal trading hours.

Other Changes Include:

• Modifications to existing order size categories based on notional dollar value and if the order is an Odd-Lot or a Fractional.
• Addition of four new order type categories.
• Changes to the content of the reports to include more granular time to execution buckets with timestamps of a millisecond or better, Changes to realized spread statistic calculations and several new statistical measures of execution quality

And of course, all those subject to the Rule need to make their reports publicly available.

These Changes will become effective 60 days after the date of publication of the adopting release in the Federal Register and the amendments have a compliance date of 18 months after the effective date.

An SEC Fact Sheet can be found here:

https://www.sec.gov/files/34-99679-fact-sheet.pdf

At BXS we are pioneers in Best Execution and Regulatory Reporting, Our founders have been there since day one of 605 and have helped our clients meet their regulatory obligations from the time the rule was adopted in 2000.

These changes are significant to BOTH those currently publishing 605 based on the new information required and those that are now required to so.

Give us a call and let’s have a discussion to make sure you are prepared for these important changes.

(646).502.4561 | info@bxstech.com