Buy- and sell-side industry organizations have developed and provided to the Securities and Exchange Commission for its consideration a proposed standardized order routing disclosure template that they claim, if used, would augment order routing and execution quality information that institutional investors would obtain from their broker-dealers. The organizations are the Investment Company Institute, the Managed Futures Association and the Securities Industry and Financial Markets Association. Among other things, the template provides for the disclosure by each broker-dealer of specific statistical data related to the number of shares executed at each trading venue it used that provided liquidity (i.e., not immediately executed) as opposed to the total number of shares that were executed and the number of shares that removed liquidity at each venue (i.e., immediately executed), also as opposed to the total number of shares executed. Information related to rebates paid to broker-dealers for adding and taking liquidity in connection with each venue would also be provided in the proposed template.
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Buy- and sell-side industry organizations propose form of template for broker-dealer minimum disclosure of order routing and execution quality information
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