The U.S. Securities and Exchange Commission’s Rule 606 requires brokers that route equity and option orders to make available quarterly reports (broken out by month) that provide statistical details regarding their routing practices. The report details the market centers (e.g., exchanges, market makers or alternative trading systems) that brokers route to and the material aspects of the brokers’ relationship with those market centers. TD Ameritrade, Inc. (“TD Ameritrade”) routes orders to its affiliate TD Ameritrade Clearing, Inc. (“TD Ameritrade Clearing”) and to third-party market centers. TD Ameritrade Clearing does not execute client orders, but rather, routes the orders it receives from TD Ameritrade to third-party market centers. As a result, both reports are presented to understand how TD Ameritrade’s orders are routed to market centers for execution.
The reports detail the per share/per contract amounts as well as the total amount of payments received by TD Ameritrade and TD Ameritrade Clearing based on the orders each firm routes to third party market centers.
Rule 606 exempts broker-dealers from disclosing execution venues that received less than 5% of non-directed orders provided that 90% of the non-directed orders are disclosed. As a result, overall totals may not equal 100%.
As required under SEC Rule 606(b)(1), on request, TD Ameritrade will provide the identity of the market center to which your orders were routed for execution in the six months prior to the request, whether the orders were directed orders or non-directed orders, and the time of the executions, if any, that resulted from such orders. This applies to both held and not held orders.
View TD Ameritrade Clearing, Inc.’s SEC 606 Order Disclosure
View TD Ameritrade Clearing, Inc.’s SEC 606 Order Disclosure XML
View TD Ameritrade, Inc.’s SEC 606 Order Disclosure