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CG
Compass (USA) LLC 590
Madison Avenue, 33rd Floor,
New
York, NY 10022 (212) 355-7630 |
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In November 2000, U.S. Securities and Exchange Commission
(Commission) adopted Rule 606, which requires all broker-dealers, such as
CG Compass (USA), LLC, that route orders in equity and option securities to make
publicly available, via a web site quarterly reports (within one month after
the end of the quarter addressed in the report) that present a general
overview of their routing practices. The
reports must identify the significant venues to which customer orders were
routed for execution during the applicable quarter and disclose the material
aspects of the broker-dealer's relationship with such venues. In addition, the Rule requires broker-dealers
to disclose, on customer request, the venues to which the customer's
individual orders were routed. In
addition to the quarterly reports, broker-dealers must respond to customer
requests for individual information on orders that are routed. The Commission, by the Division pursuant to delegated
authority, granted a limited exemption from the Rule for broker-dealers that
route a de minims number of customer orders in covered securities for
execution. Specifically, the
Commission is exempting from the quarterly reporting requirement of Rule 606
those firms that have routed, on average, 500 or fewer customer orders in
covered securities per month during the preceding calendar quarter. Thus, for example, firms that routed fewer
than 1500 customer orders during the second calendar quarter are exempted
from the quarterly reporting requirement for the third quarter. The Commission emphasizes, however, that
firms eligible for this limited exemption must still comply with Rule 606,
which requires CG Compass (USA) LLC to provide interested customers with
routing information about specific orders and to notify customers annually
that such information is available. The Commission believes that the limited exemption is
necessary or appropriate in the public interest, and that it is consistent
with the protection of investors. The
cost for small firms with minimal order flow to comply with the reporting
requirements of the Rule outweighs the benefit those quarterly reports
provide to the firms customers. The
firms that qualify for this limited exemption are still required to provide
information about a customer's orders upon request pursuant to Rule 606,
therefore customers are still able to obtain information similar to that
which would be disclosed in a quarterly web-posted report. As a result, the transparency sought by the
Rule is not substantially affected by the exemption. The exemption granted by the Commission is subject to
modification or revocation at any time if the Commission determines that such
action is necessary or appropriate in the public interest or otherwise in
furtherance of the purposes of the Exchange Act. Given the exemption possibilities, CG Compass (USA) LLC may
not have web-postings that are in perfect chronological order, as it may fall
exempt from posting a report addressing certain exempt quarters. The following is a link to CG Compass (USA) LLC's
quarterly Rule 606 Report.
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For further information, please visit http://brokercheck.finra.org/ |
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