SEC RULE 606/605 REPORTS

Seamless SEC 605 Reviews & 606 Reports

Automated, accurate, and regulator-ready reports that ensure complete data integrity and transparency in order routing and execution disclosures.

Relevant rules

SEC Rule 605 - Disclosure of order execution information.
SEC Rule 606 - Disclosure of order routing information.

Common deficiencies

Failure to accurately calculate order routing or execution information.
Failure to disclose required information or provide incomplete or inaccurate information (e.g. lack of rebates received, wrong execution venues, etc.).
Failure to account for all trade data in the analysis produced.

Knowtice’s prevention plan

Key features:

Continuous basis

Knowtice will seamlessly integrate with the executing broker of our broker-dealer client to ingest routing and execution data.
Key features:

Quarterly basis

The system will produce SEC Rule 606 reports for public display and SEC Rule 605 reports to be utilized in the periodic best execution analysis.
Key features:

Knowtice ensures that your reports…

  • Accurately calculate order routing or execution information.
  • Contain all trade data, producing a reconciliation to evidence that none is lacking in the analysis.
  • Disclose all required information and do not provide incomplete or inaccurate information (e.g. lack of rebates received, wrong execution venues, etc.).
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Real findings. Real fines

Recent fines of broker-dealers highlight the necessity of producing accurate and timely reports.
Broker-Dealers Fine
Date
May 2025
Broker-Dealer
BTG Pactual US Capital
Fine Amount
$400,000
Failure to establish and implement AML processes that could detect suspicious transactions.
Fine Amount
$75,000
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Date
October 2024
Broker-Dealer
Maxim Group LLC

Publishing public Rule 606 quarterly reports on handling of customers’ orders that failed to disclose required information and provided incomplete or inaccurate information.

Fine Amount
No monetary fine due to concurrent financial condition
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Date
September 2024
Broker-Dealer
SpeedTrader, Inc (fka Mint Global Markets, Inc.)

Failure to comply with best execution obligations.

Fine Amount
$425,000
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Date
September 2024
Broker-Dealer
Wedbush Securities

Published Rule 606 reports excluded equity and options orders in NMS securities due to data integrity issues.

Fine Amount
$3,500,000
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Date
December 2023
Broker-Dealer
Interactive Brokers LLC

Reviews of customer execution quality failing to meet the reasonable diligence standard of FINRA Rule 5310 and the regular-and-rigorous review requirements of FINRA Rule 5310.09.

Fine Amount
$500,000
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Date
June 2023
Broker-Dealer
Open to the Public Investing, Inc.

Failure to meet best execution obligations.

Fine Amount
$2,000,000
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Date
October 2022
Broker-Dealer
Barclays Capital Inc.

Failure to comply with best execution obligations in connection with its customers’ electronic equity orders.

Fine Amount
$50,000
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Date
October 2022
Broker-Dealer
Liquidnet, Inc

Inaccurate data in monthly reports it was required to publish pursuant to Regulation NMS Rule 605.

Use our SEC Rule 605/606 tool to prevent costly fines!

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