Rule 606 Update Nears

Markets Media April 5, 2019 – In an article about the upcoming Rule 606 disclosures, Healthy Markets Executive Director Tyler Gellasch is quoted saying “It’s not great as a comparison tool, nor does it help the markets writ large understand the conflicts of interest that the brokers face.”  Gellasch also said “The other downside is, it doesn’t apply to anything other than not held orders by institutions. There are a lot of exemptions and exceptions.”  Gellasch noted that smaller brokers, particularly those that don’t have their own suite of trading algos and instead use ‘white label’ products of larger firms, may face challenges gathering the information they need to deliver to clients. Finally Gellasch said that overall, the Rule 606 update is a long time coming. “This reform is a very big step for improving best execution,” Gellasch said. “Investors are going to have a much better idea whether a broker is routing for best execution, or whether a broker is routing for the benefit of the broker.” (Full Story)

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