EXECUTION QUALITY REPORTS
Disclosure of SEC-Required Order Execution Information
BIDS Trading, L.P. supports the development and implementation of rules and regulatory initiatives that produce a more efficient market. On November 17, 2000, the Securities and Exchange Commission adopted two rules to improve public disclosure of execution and routing practices.
Rule 605 and Rule 606 were adopted to standardize and improve public disclosure of execution and routing practices. Pursuant to the SEC’s execution quality disclosure rule (Rule 605), monthly performance statistics can be obtained directly from the BIDS Trading web site.
RULE 605 REPORTS
Rule 605 requires market centers that execute orders in national-market system (NMS) securities to publish monthly reports that measure execution quality.
To facilitate comparisons across market centers, the Rule sets forth execution quality criteria (such as effective spread, rate of price improvement and disimprovement, fill rates, and speed of execution). The Rule also prescribes the manner in which the execution criteria are to be calculated. The resulting statistical information is categorized by individual security, by order type (e.g., market and inside-the-quote limit), and by order size (e.g., 100-499 share orders). The rule was based on the belief that the public disclosure of uniform statistics would allow for meaningful comparison of execution quality and would spur more vigorous competition among execution service providers. Orders larger than 10,000 shares are excluded under this rule.
Format of Monthly Reports and Procedures for Making Reports Publicly Available:
BIDS Trading RULE 605 REPORTS
This page contains the definitions for the data displayed in Rule 605 reports and download files provided by BIDS Trading, LP. The files are updated every month on or around the 25th of each month, reflecting execution quality for trades reported on the BIDS Trading ATS.
The download files are available in zip format, which contains an ASCII text file. The .zip files use WinZip technology to compress the files. To view these files you must have Winzip software.
Additional information about the Rule 605 reports:
Initial SEC release adopting Rule 605.
SEC Staff Legal Bulletin No. 12R that contains frequently asked questions and answers regarding the rule.
SEC Notice Providing Additional Relief to Market Participants regarding Rule 605 NEW.
Joint SRO Plan submitted to the SEC by all self-regulatory organization ("SRO") participants and sets forth the procedures that market centers are required to follow in making their monthly reports available to the public.