In recent years, Congressional hearings, best-selling books, press reports, and regulatory investigations have shined a spotlight on brokers’ order routing practices. As a result, investors are increasingly questioning and seeking to better understand how their orders are routed and executed. At the same time, regulators are looking to empower investors with more information, including through proposals to revise order handling disclosures and disclosures by alternative trading systems (ATSs).

While rules requiring better disclosures have been proposed, final rules may still be years away. In the meantime, firms looking to protect themselves are increasingly utilizing questionnaires with brokers and execution venues.

This Order Routing Questionnaire, developed by the Healthy Markets Association, is intended to help. Questionnaires should be part of a comprehensive set of policies, procedures, and practices designed to help the investor or firm sending orders make smarter decisions. The Healthy Markets Order Routing Questionnaire helps firms achieve those results.

The Healthy Markets Order Routing Transparency Initiative, which is supported by our Working Group, is a multi-pronged effort to enhance order routing disclosure practices. These efforts include:

• Development and publication of the Healthy Markets Order Routing Questionnaire to help investors make more informed broker selection decisions.
• Development of Order Routing Disclosure best practices and working with individual firms to improve disclosure practices.
• Development and publication of unique reports related to key issues impacting broker order routing practices.
• Offering suggestions to regulators and the public, including through regulatory comment letters.