Rule 605 and 606 Reporting – VIRTU Financial Inc.

Disclosure of SEC-Required Order Execution Information

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.

Overview

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

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.

See historical monthly reports about our execution quality:

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.

Virtu Americas LLC and Virtu Financial BD LLC combined operations with Virtu Americas LLC as the surviving entity. As such we have incorporated Virtu Financial BD LLC’s Rule 605 execution statistics separately as MPID VIRT.Both MPIDs included in the Virtu Americas LLC 605 report, VIRT and NITE, belong to the same market center.

Additional information about the Rule 605 reports:

Rule 606

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:

Virtu Financial Capital Markets, LLC / ROUTING OF CUSTOMER ORDERS RULE 606 REPORTS:
Q3-2018 | Q2-2018 | Q1-2018

ITG / ROUTING OF CUSTOMER ORDERS RULE 606 REPORTS (2):
Q2-2020 (pdf) (xml) | Q1-2020 (pdf) (xml) | Q4-2019 | Q3-2019 | Q2-2019 | Q1-2019 | Q4-2018 | Q3-2018 | Q2-2018 | Q1-2018

(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 Americas LLC (“VAL” or “the Firm”) in accordance with Securities and Exchange Commission Rule 606(a) (the “Rule”) is publishing statistical information about its routing practices for held non-directed orders received from customers (as defined in the “Rule”) in S&P 500 and Non-S&P 500 national market system securities.
VAL acts as a market center in S&P 500 and Non-S&P 500 national market system securities and identifies itself as the execution venue on riskless principal executions pursuant to SEC guidance.

VAL operates two alternative trading systems, MatchIt and POSIT and may route orders to each of these venues for execution.

Virtu Investments, LLC (a commonly controlled affiliate of VAL) has an ownership interest in the Members Exchange and MIAX.

VAL 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 VAL in relation to orders directed to such market center. VAL may also receive incremental pricing benefits from market centers based upon the aggregate trading volume generated by the Firm (including trading volume not associated with client orders).

“Other Orders” include market opening and closing orders, orders submitted with stop prices, all- or-none orders and orders that must be executed at prices above the national best bid (such as non-exempt short sale orders).

Additional information about the Rule 606 reports: