Agency Information Collection Activities; Proposed Collection; Comment Request; Extension: Customer Account Statements
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This notice involves the extension of a rule requiring broker-dealers to disclose payment practices for order flows. The purpose is to keep customers informed about how their orders are routed in the securities market. This impacts broker-dealers and the millions of customer accounts they manage.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Extension of the information disclosure rule
- Requires annual disclosure of payment practices
- Affects broker-dealer order routing transparency
Obligations
What this law requires
Broker-dealers must disclose on each new customer account the firm's policies regarding receipt of payment for order flow from market makers, exchanges, or exchange members
Broker-dealers must disclose yearly on the annual customer account statement the firm's policies regarding receipt of payment for order flow from market makers, exchanges, or exchange members
Broker-dealers must disclose the aggregate amount of monetary payments, discounts, rebates, or reduction in fees received by the firm over the past year related to order routing
Broker-dealers must provide order flow payment disclosures for national market system securities only
Compliance with Rule 607 (17 CFR 242.607) is mandatory for all broker-dealers subject to the Securities Exchange Act of 1934