Routing Information
Important information regarding order routing and execution.
View Regulation NMS 606 (formally Rule 11Ac1-6).
Order Execution and Routing
Smith, Moore & Co. transacts business with various dealers in securities, including listed and over-the-counter stocks. For equity securities, the firm monitors performance of competing market centers and dealers and routes orders to those that consistently guarantee execution at the national best bid or offer (NBBO) or better. Routed market orders generally are directed to market centers or dealers that offer opportunity for better prices through either automated or manual systems.
Pursuant to the Securities and Exchange Regulation NMS 606 (formerly Rule 11Ac1-6), Smith, Moore & Co. and other broker-dealers are required to make available to clients quarterly reports that represent a general overview of their order routing practices. In compliance with the SEC rule, Smith, Moore & Co. will provide its quarterly routing information.
Clients may request in writing the identity of the venue where their orders were routed for execution, the time the orders were executed and whether the orders were directed to a particular venue at their direction or by Smith, Moore & Co. This information will be provided only for orders routed for execution during the prior six months.
Payment for Order Flow
Smith, Moore & Co. may receive from certain market centers and dealers either cash payments or credits against exchange fees in return for routing orders. The source and amount will be furnished upon written request in accordance with SEC Rule 10b-10. If an order is subject to payment for order flow, the order will be executed at a price no worse than the displayed NBBO. The order may have the opportunity to be executed at a price better than the NBBO when the spread between the bid and ask price is greater than the minimum variant (usually 1 cent).