Are you in compliance?

Don't miss out! Sign up today for our weekly newsletters and stay abreast of important GRC-related information and news.


Status message

Start your free, no obligation 5-day trial to continue exploring with full access.

SEC rule adds new customer disclosures for brokers

Joe Mont | November 5, 2018

The Securities and Exchange Commission has voted to adopt amendments that will require broker-dealers to disclose to investors “new and enhanced information about the way they handle investors’ orders.”

“In the eighteen years since the Commission originally adopted its order handling and routing disclosure rules, technology and innovation have driven significant changes in the way that our equities market functions and investors transact,” Chairman Jay Clayton said in a statement. “This rule amendment will make it easier for investors to evaluate how their brokers handle their orders and ultimately make more informed choices about the brokers with whom they do business.”

Specifically, the Commission, on Nov. 2, amended Rule 606 of Regulation NMS to require a broker-dealer, upon request of a customer who places a “not held” order (an order in which the customer gives the firm price and time discretion), to...

Read this single article for $49, or click the subscribe button below to review subscription options.

Enjoy unlimited access to thousands of articles, browse five years of digital magazines, qualify for reduced admission to events, and more.