SEC Rule 605 – Deadline: December 14th 2025, Is Your Firm Prepared?

The U.S. Securities and Exchange Commission (SEC) has adopted important amendments to Rule 605 of Regulation NMS, designed to significantly enhance transparency around order execution quality. These amendments address the evolving landscape of equity markets and aim to provide clearer, more actionable insights into how orders are executed.

Key Highlights of the Rule 605 Amendments

Expanded Scope:
The amendments now cover additional entities, including larger broker-dealers that introduce or carry 100,000 or more customer accounts, as well as single-dealer platforms.

Enhanced Reporting Requirements:
Reporting entities are now required to disclose more comprehensive execution quality metrics, such as the average effective spread relative to quoted spread and improved size improvement statistics.

Broader Order Type Inclusion:
The definition of “covered orders” now includes orders submitted outside regular trading hours, orders with stop prices, and certain short sale orders, significantly expanding reporting obligations.

Improved Public Accessibility:
All reports must be available in an electronic, uniform, and easily comparable format, allowing market participants to readily assess execution quality across various platforms and brokers.

Compliance Deadline Approaching: December 14, 2025

The SEC has set December 14, 2025, as the compliance deadline for these significant amendments. As this deadline rapidly approaches, it’s critical for firms to ensure they have systems and processes in place to comply with these enhanced requirements effectively.

How BXS Can Help Your Firm Prepare

BXS provides specialized solutions designed specifically to help firms meet and exceed the new SEC Rule 605 requirements. Our suite of tools and services includes:

• Automated Data Collection and Reporting: Simplify and automate your reporting processes, ensuring accuracy and compliance.

• Comprehensive Compliance Support: Navigate regulatory changes confidently with expert-backed guidance.

• Expert Insight and Guidance: Benefit from our experience to understand and implement best practices in reporting execution quality.

Don’t Wait—Schedule a Demo Today

With the compliance deadline rapidly approaching, now is the perfect time to ensure your firm is ready. Schedule a demo with BXS today and learn how we can help you seamlessly transition to meet the new Rule 605 obligations.