On April 1st, the staff of the SEC’s Division of Trading and Markets published a list of answers to frequently asked questions (FAQs) concerning Rule 605 of Regulation NMS. For further details on Rule 605, please see the 2024 Rule 605 Disclosure of Order Execution Information amendments adopting release on the SEC’s site.
The FAQs address the following categories in depth:
- Format of Reports and Procedures for Making Monthly Reports Publicly Available
- Reporting Entities
- Covered Orders and Scope of Reportable Orders
- Executions, Cancellations, and Modifications to Orders
- Timestamping
- Execution Quality Statistics
- Rescinded and Withdrawn FAQs
These staff FAQs are effective on August 1, 2026, which is the compliance date for amendments to Rule 605 of Regulation NMS published in the Federal Register in April 2024. While these FAQs should not be deemed a substitute for the related rule, filing entities may find the guidance helpful. The FAQ responses solely reflect the views of the staff. They are not rules, regulations or statements of the SEC, and the SEC has neither approved nor disapproved them. These responses, as with all staff statements, have no legal force or effect, they do not alter or amend applicable law, nor do they create new or additional obligations for any person.
The complete list of Rule 605 of Regulation NMS FAQs is available on sec.gov.
Sources:
Frequently Asked Questions: Rule 605 of Regulation NMS (sec.gov)
Rule 605 Amendments Adopting Release (sec.gov)
