SEC expands scope of order execution disclosure rule
By 
Kyle Brasseur2024-03-07T20:25:00
Lost in the shuffle of the approval of its controversial climate-related disclosure rule, the Securities and Exchange Commission (SEC) on Wednesday also adopted amendments to its rule for order executions in national market system (NMS) stocks.
The changes will expand the disclosure requirements under Rule 605 of Regulation NMS to include broker-dealers who carry 100,000 or more customer accounts, the SEC said in a fact sheet. Also amended was the definition of “covered order” to include certain orders submitted outside of regular trading hours, certain orders submitted with stop prices, and nonexempt short sale orders and new requirements for standardized monthly reports mandated by Rule 605.
The agency noted the fact the rule was adopted in 2000 and hadn’t been substantively updated since then as a driver behind the changes.
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