S3 CEO Mark Davies discusses the new SEC Rule 606 reporting format and what asset managers can glean from these reports

by Chris Kentouris
18 March 2020

Complying with a new US regulatory requirement for brokers to give investors more information on trade routing decisions under the amended Rule 606 could come down in the short-term to technologists creating the right packaging as much as operations managers finding the right data.

With less than a month left to prepare for the April 1 deadline for collecting data on discretionary “look-through” trades under the Securities and Exchange Commission’s new Rule 606, introducing and executing brokers are deciding which data format and how much information they will use. Fund managers won’t be seeing any new reports until May 26 at the earliest. For now, IT directors are the ones doing the heavy lifting to figure out how firms can create and accept the agreed-upon data exchange. They have two options: a format designed by trade execution reporting vendor S3 and the New York-based regulatory technology and compliance consultancy Financial Information Forum (FIF), or proprietary formats agreed upon between introducing brokers and executing brokers.

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