BXS launches Rule 606 Consolidator Tool for competitive routing analysis
BXS, a compliance reporting and analytics solutions provider, has launched a new Rule 606 Consolidator tool.
Available to all existing BXS customers, the new add-on provides a comprehensive view of brokers’ public Rule 606 report filings, allowing market centres to analyse how their clients and prospects are routing order flow and how their competitors are interacting with these entities, all through a consolidated, easy-to-use web portal.
The new service is the latest innovation from BXS (formerly Best Execution Solutions), a longtime leader in the regulatory reporting technology space. BXS scrapes the internet to bring these public Rule 606 reports into a single location and cleans them up to ensure consistency and clarity, creating a standardised database.
Users can filter the reports by broker-dealer or destination, allowing them to more easily derive competitive insights around how clients make their order routing decisions, how their competitors win order flow and more. The platform includes all information captured in public Rule 606 reports, including payment-for-order-flow disclosures, fee and rebate statistics and other critical data points.
Michael Post, Executive Vice President at BXS, says: “Competition for order flow is as fierce as it’s ever been, so it is crucial that ATSs and wholesalers are able to understand and analyse how brokers are interacting with the markets. While the enhanced Rule 606 reporting requirements introduced last May resulted in much discussion within the industry focused on the burden of the new requirements, our new product is a great example of how, with the right tools, market participants can go beyond simple compliance reporting and use new regulatory mandates to their advantage.”
The tool demonstrates BXS’ ability to leverage regulatory reporting requirements to create value-added insights that enable innovation and business benefits. This is critical in light of the proliferation of routing venues and algo providers that has occurred in recent years. In addition to competitive advantages for market centres, broker-dealers can also leverage the product to comply with FINRA Rule 5310, which states that members must compare the quality of the executions they are obtaining to that of competing markets.