605/606 Reporting

Under the scope of regulatory reporting, the ECS software offers reporting for SEC rules 605 and 606, which cover order handling and order routing.

SEC Rule 605 requires market centers that trade national market system securities to make publicly available monthly electronic reports of execution quality.
J&J will analyze client data and provide reporting as required by SEC Rule 605, which currently requires such reports to include information about each market center's quality of executions on a stock-by-stock basis, including how market orders of various sizes are executed relative to public quotes.  These reports must also disclose information about effective spreads (the spreads actually paid by investors whose orders are routed to a particular market center).

SEC Rule 606 requires broker-dealers to make publicly available for each calendar quarter a report on its routing of non-directed orders in NMS securities during that quarter.
J&J will analyze client data and provide reporting as required by SEC Rule 606, which currently states that broker-dealers that route orders on behalf of customers are required to prepare quarterly reports, with each report divided into four separate sections for securities that are (i) listed on the New York Stock Exchange, (ii) qualified for inclusion on The Nasdaq Stock Market, Inc., (iii) listed on the American Stock Exchange, LLC or any other national securities exchange and (iv) option contracts, with each such section disclosing the following information:
  • The percentage of total customer orders that were non-directed orders, and the percentages of total non-directed orders that were market orders, limit orders, or other orders.
  • The venues to which a significant percentage of total non-directed orders were routed for execution.
  • The percentage of total non-directed orders routed to the venue, and the percentages of total non-directed market orders, non-directed limit orders, and non-directed other orders that were routed to the venue.
  • Terms of the material aspects of the broker-dealer’s relationship with each venue identified above, including a description of any arrangement for payment for order flow and any profit-sharing relationship.

Jordan & Jordan provides public access to the Rule 605 and 606 Services reports (the “Public 605 and 606 Reports”), as well as private, secure access to detailed Rule 605 and 606 data through ECS for on-demand query and analysis.