SEC Alert! SEC is soliciting comments on the existing collection of information provided for in Rule 607.
Rule 607 requires disclosure on each new account and on a yearly basis thereafter, on the annual statement, the firm's policies regarding receipt of payment for order flow from any market makers
Source: [SEC File No. 270-382, OMB Control No. 3235-0762]: https://public-inspection.federalregister.gov/2023-03154.pdf
Good morning! Do you dislike PFOF and would like to say something about it? Here is your chance! The SEC is soliciting comments about continuing to require Rule 607 (PFOF) disclosures. Here is a great opportunity to talk about how the disclosures possibly do not go far enough in warning folks to the dangers of PFOF?
The purpose of the rule is to ensure that customers are adequately apprised of the broker-dealer's order routing practices with respect to the customer's order
Rule 607 requires disclosure on each new account and on a yearly basis thereafter, on the annual statement, the firm's policies regarding receipt of payment for order flow from any market makers, exchanges or exchange members to which it routes customers' order in national market system securities for execution; and information regarding the aggregate amount of monetary payments, discounts, rebates or reduction in fees received by the firm over the past year.
The Commission estimates that approximately 3,643 respondents will make the third-party disclosures required in the collection of information requirements to 183,511,801 customer accounts each year. The Commission estimates that the average number of hours necessary for each respondent to comply with Rule 607 per year is 39.714 hours, which results in an average aggregated annual burden of 144,678.102 hours.
Written comments are invited on:
- Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility
- The accuracy of the Commissionโs estimates of the burden of the proposed collection of information
- Ways to enhance the quality, utility, and clarity of the information collected
- Ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology
How to comment:
Please direct your written comments to: David Bottom, Director/Chief Information Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F Street, NE, Washington, DC 20549
Or send an e-mail to: [email protected] subject: [SEC File No. 270-382, OMB Control No. 3235-0762]
TLDRS: Do you dislike PFOF and would like to say something about it? Here is your chance! The SEC is soliciting comments about continuing to require Rule 607 (PFOF) disclosures. Here is a great opportunity to talk about how the disclosures possibly do not go far enough in warning folks to the dangers of PFOF?
