Regulatory Alerts2022-12-14
Disclosure of Order Execution Information
The Securities and Exchange Commission proposes amendments to Rule 605 of Regulation NMS requiring market centers and larger broker-dealers to disclose updated execution quality reports for National Market System stocks. The proposal expands the scope of covered orders to include pre- and post-market trades and stop orders, while refining order size and type categorizations to capture fractional, odd-lot, and large-sized transactions. It mandates more granular time-to-execution metrics measured in milliseconds, calculates realized spread at fifteen seconds and one minute, and requires all reporting entities to publish accessible summary reports to enhance market transparency and competition.
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