Regulatory Information
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CG Compass (USA) LLC |
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In November 2000, U.S. Securities and Exchange Commission (Commission) adopted Rule 606, which requires all broker-dealers, such as CG Compass (USA), LLC, that route orders in equity and option securities to make publicly available, via a web site quarterly reports (within one month after the end of the quarter addressed in the report) 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 disclose, on customer request, the venues to which the customer’s individual orders were routed. In addition to the quarterly reports, broker-dealers must respond to customer requests for individual information on orders that are routed. The Commission, by the Division pursuant to delegated authority, granted a limited exemption from the Rule for broker-dealers that route a de minims number of customer orders in covered securities for execution. Specifically, the Commission is exempting from the quarterly reporting requirement of Rule 606 those firms that have routed, on average, 500 or fewer customer orders in covered securities per month during the preceding calendar quarter. Thus, for example, firms that routed fewer than 1500 customer orders during the second calendar quarter are exempted from the quarterly reporting requirement for the third quarter. The Commission emphasizes, however, that firms eligible for this limited exemption must still comply with Rule 606, which requires CG Compass (USA) LLC to provide interested customers with routing information about specific orders and to notify customers annually that such information is available. The Commission believes that the limited exemption is necessary or appropriate in the public interest, and that it is consistent with the protection of investors. The cost for small firms with minimal order flow to comply with the reporting requirements of the Rule outweighs the benefit those quarterly reports provide to the firms customers. The firms that qualify for this limited exemption are still required to provide information about a customer’s orders upon request pursuant to Rule 606, therefore customers are still able to obtain information similar to that which would be disclosed in a quarterly web-posted report. As a result, the transparency sought by the Rule is not substantially affected by the exemption. The exemption granted by the Commission is subject to modification or revocation at any time if the Commission determines that such action is necessary or appropriate in the public interest or otherwise in furtherance of the purposes of the Exchange Act. Given the exemption possibilities, CG Compass (USA) LLC may not have web-postings that are in perfect chronological order, as it may fall exempt from posting a report addressing certain exempt quarters. The following is a link to CG Compass (USA) LLC’s quarterly Rule 606 Report.
Rule 606 Report Business Continuity Plan For further information, please visit http://brokercheck. |
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