SEC Adopts Amendments to Regulation NMS to Expand Disclosure
Categories: Capital Markets, Dispute Resolution
On November 2, 2018, the Securities and Exchange Commission (the “Commission”) amended Rules 605 and 606 under Regulation NMS to require additional disclosures by broker-dealers to customers regarding the handling of their orders.1 The Commission stated that the amended rules would provide more detailed information to customers—with a focus on institutional customers—thereby allowing a more effective assessment of how broker-dealers are carrying out their best execution obligations and the impact of a broker-dealer’s order routing decisions on the quality of their executions. The Commission noted its particular concern with regard to information leakage and potential conflicts of interest in order routing decisions.
