What is a 605 report?

Securities and Exchange Commission Rule 605 (formerly Rule 11Ac1-5) requires that market centers that trade national market system securities disclose monthly electronic reports about the quality of their executions on a stock-by-stock basis based on the previous month’s trading activity.

What are 605 and 606 reports?

Rules 605 and 606 were adopted to standardize and improve public disclosure of execution and routing practices. Pursuant to the SEC’s execution quality disclosure rule (Rule 605), monthly performance statistics can be obtained directly from the Virtu website.

What is Rule 605 Regulation NMS?

Rule 605 generally requires a market center that trades NMS stocks to make available to the public monthly electronic execution reports that include uniform statistical measures of execution quality.

What is a 606 Disclosure?

U.S. Securities and Exchange Commission (SEC) Rule 606(a) requires all brokerage firms to make publicly available quarterly reports, broken down by calendar month, containing certain required statistical information regarding the routing of held, non-directed customer orders in Regulation NMS stocks and listed.

What is cat reporting?

The Consolidated Audit Trail (CAT) is a regulatory reporting utility commissioned by the Securities and Exchange Commission (SEC) to enable regulators to more fully track trading activity and boost transparency; the CAT also heralds significant new obligations and reporting requirements for firms.

What are NMS securities?

NMS Security means any security or class of securities for which transaction reports are collected, processed, and made available pursuant to an effective transaction reporting plan, or an effective national market system plan for reporting transactions in Listed Options.

What did ASC 606 Replace?

The ASC 606 accounting standard replaced the previous ASC 605, and the main reason for the switch was a need to bring GAAP revenue recognition standards in the US to a better level of compliance with the IFRS (International Financial Reporting Standards).

What is a non directed order?

Non-directed orders are. orders that customers have not specifically instructed to be routed to a specific destination.

Can the presiding judge be called as a witness?

The presiding judge may not testify as a witness at the trial. A party need not object to preserve the issue.

How is ASC 606 different?

Is ASC 606 a change in accounting principle?

Under ASC 606-10-65-1(e), an entity that elects to use the full retrospective method is required to disclose information about a change in accounting principle upon initial adoption of the new revenue standard in accordance with the guidance in ASC 250-10-50-1 and 50-2 (see Section 15.2.

What does CAT stand for finra?

Consolidated Audit Trail
The Consolidated Audit Trail (CAT) section of the 2022 Report on FINRA’s Risk Monitoring and Examination Activities (the Report) informs member firms’ compliance programs by providing annual insights from FINRA’s ongoing regulatory operations, including (1) relevant regulatory obligations and related considerations, (2 …

What is a CAT Imid?

Summary. Industry member IDs (IMIDs) that appear in order event reports submitted to CAT must conform to rules established to populate the various IMID fields, since CAT uses these fields to determine the firm for which data is submitted and to facilitate event linkages within a firm and between venues.

What is NMS finance?

The National Market System (NMS) is the national system for trading equities in the United States. The System includes all the facilities and entities which are used by broker-dealers to fulfill trade orders for securities. This includes: Major stock exchanges, such as New York Stock Exchange and Nasdaq.

When did Reg NMS go into effect?

Key Takeaways. The SEC issued the Regulation National Market System (Reg NMS) in 2005 to strengthen U.S. securities exchanges and account for changing technology. The goal of Reg NMS was to improve market efficiency and fairness.

What is the difference between 605 and 606?

ASC 606 focuses on the transfer of control rather than the satisfaction of obligations prescribed by ASC 605. It’s a principles-based framework that introduces more judgement into the revenue recognition process. Its core principles are focused on the nature of the promises in a contract.

What is a held order?

A held order is a market order that requires prompt execution for an immediate fill. This can be contrasted with a not-held order, which provides brokers with both time and price discretion to try and get a better fill for a customer.

What is a direct routed equity order?

What Is Directed Order? Directed order flow occurs when a customer’s order to buy or sell securities is given specific instructions for the order to be routed to a particular exchange or venue for execution.

What are the 605 and 606 reporting rules?

Rule 605 and 606 Reporting 1 Overview. Rules 605 and 606 were adopted to standardize and improve public disclosure of execution and routing practices. 2 Rule 605. 3 Supplemental Retail Execution Quality Statistics. 4 Rule 606.

What is rule 605 of the SEC Act?

Rule 605 Rule 605 requires “market centers” that trade National Market System securities to make available standardized, monthly reports containing statistical information about “covered order” executions.

What is SEC rule 605 and 606 reporting Virtu?

Rule 605 and 606 Reporting Virtu supports the development and implementation of rules and regulatory initiatives that produce more liquid and transparent markets. On November 17, 2000, the Securities and Exchange Commission (“SEC”) adopted two rules to improve public disclosure of execution and routing practices.

Where can I find SEC 605 execution quality disclosure statistics?

Pursuant to the SEC’s execution quality disclosure rule (Rule 605), monthly performance statistics can be obtained directly from the Virtu website. Client-specific Rule 605 Execution Statistics can be obtained by accessing our web-based client portal using a password-protected login.