SEC Rule 606 Disclosures
SEC Rule 606 requires broker-dealers that route orders on behalf of customers to prepare quarterly reports that disclose specific information about the firm’s order routing practices. The information presented in these quarterly reports is aggregated but customers can request details from their investment representative about the identity of the venues to which that customer’s orders were routed for execution in the six months prior to the request, whether the orders were directed at the customer’s request to a specific execution venue, and the time of the executions, if any, that resulted from those orders.
MWR provides two different reports concerning its order-routing practices. The majority of MWR’s customer orders are sent to our clearing firm, National Financial Services LLC (“NFS”) and NFS makes the subsequent decisions about where the orders should be sent for execution. The required information about NFS’s order routing practices appears in the link below labeled “Rule 606 NFS Order Routing Information.”
MWR acts as a market maker in a number of securities and also trades on a principal basis for its own account. MWR separately reports its order routing practices for those orders routed to its internal trading desks. These orders executed by MWR are shown on the quarterly report with the venue designation “McAdams Wright Ragen, Inc.” Where MWR trades as Principal, the firm stands to earn 100% of whatever profits or losses are generated from those transactions. The required information about MWR’s order routing practices appears in the link below labeled “Rule 606 MWR Order Routing Information.”