2025-00664NoticeWallet

Submission for OMB Review; Comment Request; Extension: Rule 606 of Regulation NMS

Published Date: 1/15/2025

Notice

Summary

The SEC is asking to keep Rule 606 alive, which makes brokers share easy-to-understand reports about how they handle your stock and options orders. This rule affects thousands of brokers and helps customers see where their orders go. No big changes or extra costs are coming, just a smooth extension to keep things transparent through 2025.

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Compliance burden on broker-dealers and clearing brokers

The SEC estimates the Rule 606 annual industry-wide time burden is approximately 183,000 hours and the total annual cost burden is approximately $1,300,000. The filing breaks this down (for example: 44,400 hours for Rule 606(a)(1); 71,600 hours for Rule 606(b)(1) across 179 clearing brokers; and 67,000 hours plus $1,300,000 for Rule 606(b)(3), including an estimated $100 per third-party response paid by 65 broker-dealers).

Keeps investor order-routing transparency

Rule 606 keeps requiring brokers to publish a quarterly aggregated public report on handling held orders in NMS stocks and options under $50,000, and to provide customer-specific routing or handling reports on request covering the prior six months (Rule 606(a)(1), 606(b)(1), and 606(b)(3)). The SEC has submitted an OMB extension request to keep these disclosures in place and set a public comment deadline of February 18, 2025.

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Key Dates

Published Date
1/15/2025

Department and Agencies

Department
Independent Agency
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