Posts

Understanding SEC Rule 606 Reporting: Why Transparency Matters in Order Routing

Image
  In today’s financial markets, transparency and compliance aren’t just nice-to-have  they’re mandatory. For broker-dealers operating in the U.S., one cornerstone of regulatory transparency is SEC Rule 606 reporting , a regulation designed to give investors a clear picture of how their orders are routed and executed in the market. But what exactly is Rule 606, why does it matter, and how can firms efficiently meet its demanding requirements? Let’s explore.    What Is SEC Rule 606? At its core, SEC Rule 606 is a disclosure rule under Regulation NMS that requires broker-dealers to report detailed information about how they handle and route customer orders. This includes both public disclosures and individualized customer information.    Rule 606 is divided into two main parts : 1. Public Reporting (Rule 606(a)) Under Rule 606(a), broker-dealers must publish a quarterly report showing where non-directed customer orders in U.S. equities and listed o...
Post a Comment
Read more

Why Broker-Dealers Need Automated SEC Rule 606 Reporting Post-S&P Global Exit

Image
  S&P Global's 2026 withdrawal from 606 services leaves 50 clients exposed, thrusting broker-dealers into a rush for seamless order routing disclosures under SEC Rule 606. This rule requires quarterly public reports on NMS equities/options routing, plus customer-requested details critical for trust and competition.​ Rule 606(a) covers held non-directed orders, detailing top venues, PFOF, and relationships; 606(b)(1/3) provides six-month order specifics for individuals/institutions. Amid SEC's focus on execution quality, firms must navigate expanded data needs, from options routing to "not held" strategies. The S&P Shakeup Impact Public client lists enable targeted outreach, but urgency peaks for Q2 2026 filings manual transitions risk errors. CCOs at mid-sized firms (25-200 staff) seek solutions blending human insight with automation, as digital marketing alone falls short in B2B regtech.​ Challenges include aggregating routing data across venues, reconciling ...
Post a Comment
Read more

Consolidated Audit Trail (CAT) Compliance & CAIS Reporting: A Practical Guide for Broker-Dealers

Image
  Regulatory reporting has become one of the most critical operational priorities for broker-dealers and capital market firms. With increasing scrutiny from regulators, Consolidated Audit Trail (CAT) Compliance , CAIS-Connect , and FINRA CAIS reporting are no longer optional they are essential for maintaining regulatory readiness, avoiding penalties, and ensuring transparent market activity. This guide explains CAT and CAIS requirements in simple terms, highlights common challenges, and shows how modern compliance solutions can streamline reporting while reducing risk. What Is Consolidated Audit Trail (CAT) Compliance? The Consolidated Audit Trail (CAT) is a centralized system mandated by the SEC to track the entire lifecycle of equity and options orders in U.S. markets from order origination to execution and cancellation. CAT compliance requires firms to: Capture accurate order and trade data Report events within strict timelines Maintain data consistency across systems Respond...
Post a Comment
Read more

Critical CAT WSP Areas Firms Must Address for FINRA Compliance in 2025

Image
  As regulatory oversight intensifies,  Consolidated Audit Trail (CAT) compliance  has become one of the most critical priorities for broker-dealers and trading firms. In 2025,  FINRA CAT   examinations are increasingly focused not just on whether firms submit data — but  how well their Written Supervisory Procedures (WSPs) support accurate, complete, and timely reporting . With evolving guidance, tighter timelines, and heightened expectations around data quality, firms can no longer rely on reactive compliance practices. Understanding which CAT-related WSP areas draw the most regulatory attention is essential to staying inspection-ready. Below are the  top CAT WSP focus areas FINRA is scrutinizing in 2025 , and how modern platforms like a  Regulatory Surveillance and Management System (RSMS)  and  CAIS-Connect  help firms stay ahead. 1. Accurate CAT Reporting Accuracy remains the cornerstone of  FINRA CAT  compliance ...
Post a Comment
Read more