Quarterly Order Routing Information – Rule 606Codi Handley2020-05-27T16:03:46-04:00
The Securities & Exchange Commission (SEC) adopted Rule 606 (formerly SEC 11Ac1-6) of the Securities Exchange Act. Rule 606 requires Kalos Capital to comply with four primary disclosure elements: 1.) to make publicly available quarterly reports that present a general overview of order routing practices; 2.) to disclose the nature of any relationship it has with venues that it routes client orders; 3.) to furnish clients upon request the venues to which individual orders were sent for execution for the previous six months; and 4.) to provide an annual written notification to clients that this information is available upon request.
With respect to Kalos Capital’s relationships with trading venues, Kalos Capital directs all trades in over-the-counter (OTC), listed stock, and options to either of our two clearing firms, Royal Bank of Canada (“RBC”) or National Financial Services, Inc. (“NFS”), for execution.
These clearing firms may receive compensation or other consideration (“payment for order flow”) for directing such orders to particular broker-dealers or market centers for execution. Payments for order flow may consist of any monetary or non-monetary compensation, remuneration, or consideration to the clearing firm in return for routing customer orders to a particular market or dealer. Payments may also include credits, rebates, or discounts against execution fees. The source and nature of compensation received in connection with a trade will be furnished to you upon your written request.