The Securities and Exchange Commission has amended its rules to require broker-dealers to disclose more information about their order routing practices. The changes are intended to help investors better understand how their broker-dealers route and handle their orders and how that may impact execution quality.

This White Paper provides an overview of Rule 606 of Regulation NMS and examines the alterations of the rule, which include the expanded disclosure of payment for order flow and any profit-sharing relationships, new customer-specific reporting requirements (there are two exceptions), and changes to routing practices regarding Actionable IOIs.