Virtu supports the development and implementation of rules and regulatory initiatives that produce more liquid and transparent markets. On November 17, 2000, the Securities and Exchange Commission (“SEC”) adopted two rules to improve public disclosure of execution and routing practices.
Rules 605 and 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 Virtu website. Client-specific Rule 605 Execution Statistics can be obtained by accessing our web-based client portal using a password-protected login.
Rule 605 requires “market centers” that trade National Market System securities to make available standardized, monthly reports containing statistical information about “covered order” executions. Rule 605 is intended to promote visibility and competition in order execution quality, particularly with respect to execution price and speed. The rule requires, among other things, that the reports be prepared in an electronic format available for downloading from an Internet website that is free and readily accessible to the public.
The disclosures required by Rule 605 do not encompass all of the factors that may be important to clients in evaluating the order routing practices of a broker-dealer. In addition, any particular market center’s statistics will encompass varying types of orders routed by different broker-dealers on behalf of customers with a wide range of objectives. Accordingly, the statistical information required by Rule 605 alone does not create a reliable basis to address whether any particular broker-dealer obtained the most favorable terms under the circumstances for customer orders.
Supplemental Retail Execution Quality Statistics
Virtu, in conjunction with the Financial Information Forum and other retail broker dealers and wholesalers, has been working on improving access to execution quality statistics for the retail community. In an effort to provide investors with more useful disclosures about order routing practices, FIF members have voluntarily agreed to provide statistics on retail execution quality. While many quantitative and qualitative factors go into determining routing decisions, the statistics are intended to provide some additional perspective on the execution quality provided to retail investors beyond the currently available Rule 605 and Rule 606 statistics.
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See historical monthly reports about our execution quality:
Virtu Americas LLC Rule 605 Reports: January 2018 | December 2018 | November 2018
Virtu Financial BD LLC 605 Reports: January 2019 | December 2018 | November 2018
ITG 605 Reports (2): January 2019 | December 2018 | November 2018 | October 2018 | September 2018
The files are updated every month on or around the 25th of each month, reflecting execution quality for trades reported for the previous calendar month end. 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.
(1) Virtu Americas LLC (VAL) is in the process of consolidating the Market Participant Identifiers (MPIDS) used by its market making unit to handle client orders. VAL has also consolidated its Rule 605 Market Center Codes as of March 2018.
(2) More 605 reporting available upon request
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
- 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
- Disclaimer for SEC Rule 605
Rule 606 requires broker-dealers that route customer orders in equities and option securities to publish quarterly reports that provide a general overview of their routing practices. In this report, the venues to which non-directed customer orders in U.S. exchange-listed equity securities and options were routed for execution must be disclosed, as well as the nature of any relationship the broker-dealer has with each venue. The purpose of this report is to provide the public with information on how broker-dealers route orders, enable the evaluation of order routing practices and foster competition among market participants. Upon request, broker-dealers also must disclose to customers the venues to which their individual orders were routed. Each customer may request a written copy of the report be mailed to them at no charge.
See historical quarterly reports of our routing practices:
(1) All Virtu Financial Capital Markets LLC’s customers have been migrated to Virtu Americas LLC as of Q3 2018. For routing data after that date, please refer to Virtu Americas LLC’s Rule 606 data.
(2) More 606 reporting available upon request
Disclosures and Material Relationships
Virtu operates alternative trading systems, Virtu MatchIt and POSIT. Virtu MatchIt is operated by Virtu Americas LLC and POSIT is operating by ITG, Inc. Virtu Americas LLC is also a market maker in OTC securities and equity securities listed on the following exchanges/venues: New York Stock Exchange (“NYSE”), NYSE Amex (“Amex”), NYSE Arca (“Arca”), NASDAQ OMX (“NASDAQ”) and BATS Exchanges (“BATS”).
Virtu routes orders to market centers, including national securities exchanges, alternative trading systems, electronic communications networks, and broker-dealers that may offer credits for orders that provide liquidity to (remove liquidity from) their books and assess fees for orders that take liquidity from (add liquidity to) their books. In some cases, the credits offered by a market center may exceed the charges assessed, such that a market center may make a payment to Virtu in relation to orders directed to such market center.
“Other Orders” include market opening and closing orders, orders submitted with stop prices, all-or-none orders and Not Held orders. Algorithmic and Smart Order Routing orders are considered Not Held.
Additional information about the Rule 606 reports: