Rule 606 Interchange

Pursuant to SEC Rule 606(b)(3), broker-dealers that handle customer’s orders in which the broker-dealer utilizes another broker-dealers systems (“outsourced routing activity”) are expected to provide on 606(b)(3) reports all relevant 606(b)(3) information pertaining to the routes in which the outsourced broker further routed. While Rule 606 does not explicitly mandate that executing broker-dealers provide order routing data to introducing brokers, the rule does require introducing brokers to obtain child order information (“look-through” data) from the executing broker (outsourced broker or algo provider) that the introducing broker outsources to.

To pass back the appropriate data from the executing broker to the introducing broker pursuant to 606(b)(3), FIF brokers should leverage the XML 606 Interchange Format.  The 606 Interchange format leverages the SEC's Order Handling Technical Specification and offers the industry a standardized methodology to deliver customers with 'look-through' data in a consistent, cost-effective, and obfuscated manner.

To access the 606 interchange format, please click here.  

To access the 606 interchange xsd schema, please click here