Smart New Rules for Smart Order Routing?
Following is the link to FlexTrade’s latest blog post by Ivy Schmerken titled, “Smart New Rules for Smart Order Routing?"
From the article:
Disclosure is the rage in financial markets regulation and the latest set of proposals relate to order handling rules.
Regulators are seeking to boost transparency into the order routing practices of broker-dealers and trading venues that reroute their orders in U.S. listed equities across exchanges and other trading venues.
As many know, on July 13, the U.S. Securities and Exchange Commission proposed a rule requiring broker-dealers to publically disclose on their web sites information about the execution and handling of institutional orders. The proposal also expands existing disclosures for retail investors, including payment for order flow information, not previously provided.
The proposed disclosure rule “for the first time will force brokers to provide standard data on where they send institutional clients’ orders to be completed,” reports Bloomberg in “SEC Proposes in Making Brokers Reveal Where Client Orders Go.”