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Execution Quality Reports Knight supports the development and implementation of rules and regulatory initiatives that produce a more liquid, transparent and compliant market center on behalf of all investors. On November 17, 2000, the Securities and Exchange Commission adopted two rules to improve public disclosure of execution and routing practices. Rule 605 and Rule 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 Knight web site. Client-specific Rule 605 Execution Statistics can be obtained using Knight's web-based client Portal using a password-protected login. RULE 605 REPORTS Rule 605 requires market centers that execute orders in national-market system (NMS) securities to publish monthly reports that measure execution quality. To facilitate comparisons across market centers, the Rule sets forth execution quality criteria (such as effective spread, rate of price improvement and disimprovement, fill rates, and speed of execution). The Rule also prescribes the manner in which the execution criteria are to be calculated. The resulting statistical information is categorized by individual security, by order type (e.g., market and inside-the-quote limit), and by order size (e.g., 100-499 share orders). SEC believed that the public disclosure of uniform statistics would allow for meaningful comparison of execution quality and would spur more vigorous competition among execution service providers. Format of Monthly Reports and Procedures for Making Reports Publicly Available:
**Knight Capital Markets, L.L.C. has revised its data of January 2008 to reflect certain corrections to the file. Please direct any questions to Knight's Client Services. **Knight Securities, L.P. was re-named Knight Equity Markets, L.P. effective September 1, 2003. ***Knight Equity Markets, L.P.'s statistics include transactions in securities listed on NASDAQ effected through Knight Match, an alternative trading system, and Knight Capital Markets L.L.C's statistics include transactions in securities listed on the New York Stock Exchange and American Stock Exchange effected through Knight Match that are eligible for Rule 605 reporting. This page contains the definitions for the data displayed in Rule 605 reports and download files provided by Knight Equity Markets, L.P.* (NITE [Market Participant ID]) and Knight Capital Markets, L.L.C.(TRIM [Market Participant ID]). The files are updated every month on or around the 25th of each month, reflecting execution quality for trades reported on NITE and TRIM 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. The downloadable files can be found on the Knight Capital Group, Inc.,website at www.knight.com. Additional information about the Rule 605 reports: Disclaimer for SEC Rule 605 [ top ] RULE 606 REPORTS Rule 606, requires all broker-dealers that route orders in equity and option securities to make available quarterly reports that present a general overview of their routing practices. The reports must identify the significant venues to which customer orders were routed for execution during the applicable quarter and disclose the material aspects of the broker-dealer's relationship with such venues. In addition, the Rule requires broker-dealers to provide customers on request, a written copy of the report of the venues to which the customer's individual orders were routed. For purposes of the Rule, the term "customer order" is defined as any order that is not for the account of a broker-dealer. The definition of "customer order" excludes any order for a quantity of a security having a market value of at least $200,000 for equity orders and $50,000 for options orders. The Term "covered securities" includes exchange-listed equities and Nasdaq National Market securities as well as Nasdaq Small Cap equities and listed options. Large orders are excluded in recognition of the fact that a general overview of order routing practices is more useful for smaller orders that tend to be homogeneous. Rule 606 applies to all types of orders (e.g., pre-opening orders and short sale orders), but broker-dealers must give an overview of their routing practices only for non-directed orders. The Rule excludes directed orders which are defined as orders that the customer specifically instructs the broker-dealer to route to a particular venue for execution. Format of Quarterly Reports and Procedures for Making Reports Publicly Available: RULE 606 REPORT ON ROUTING OF INSTITUTIONAL CUSTOMER ORDERS This page contains the definitions for the data displayed in Rule 606 reports and download files provided by Knight Equity Markets, L.P.* ("NITE"). The files are updated quarterly on or around the 25th of the month following the end of the preceding quarter. *Knight Securities, L.P. was re-named Knight Equity Markets, L.P. effective September 1, 2003. Additional information about the Rule 606 reports:
Disclaimer for SEC Rule 606 [ top ] |
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