- A Dealer Member must disclose to its clients in writing the following:
- a description of the Dealer Member’s obligation under section 3120,
- a description of the factors the Dealer Member considers for the purpose of achieving best execution,
- a description of the Dealer Member’s order handling and routing practices intended to achieve best execution of client orders for listed securities, that include the following:
- the identity of any Marketplace to which the Dealer Member might route the client orders for handling or execution,
- the identity of each type of intermediary (domestic or foreign) to which the Dealer Member might route the client orders for handling or execution,
- the circumstances in which the Dealer Member might route client orders to a Marketplace or intermediary identified in sub-clause 3129(1)(iii)(a) or (b) above,
- the circumstances, if any, under which the Dealer Member will move a client order entered on one Marketplace to another Marketplace,
- the nature of any ownership by the Dealer Member or affiliated entity of the Dealer Member in, or arrangement with, any Marketplace or intermediary identified in sub-clause 3129(1)(iii)(a) or (b) above,
- if any client orders may be routed to an intermediary identified in sub-clause 3129(1)(iii)(b) above, pursuant to an arrangement with that intermediary, and
- a statement that client orders will be subject to the order handling and routing practices of the intermediary identified in sub-clause 3129 (1)(iii)(b) above,
- a statement that the Dealer Member has reviewed the client order handling and routing practices of the intermediary identified pursuant to sub-clause 3129(1)(iii)(b) and is satisfied that it provides reasonable assurance of achieving best execution of client orders,
- a statement as to:
- whether fees are paid by the Dealer Member or payments or other compensation is received by the Dealer Member for a client order routed, or a trade resulting from a client order routed, to a Marketplace or intermediary identified pursuant to sub-clause 3129(1)(iii)(a) or (b) above,
- the circumstances under which the costs associated with the fees paid by Dealer Member or the compensation received by the Dealer Member will be passed on to the client, and
- whether routing decisions are made based on fees paid by the Dealer Member or payments received by the Dealer Member,
- and,
- if providing market data as a service to clients, a description of any market data that is missing, including an explanation of the risks of trading with incomplete trading data.
- A Dealer Member must provide separate disclosure for each class or type of client if the factors and order handling and routing practices used for such clients materially differ.
- A Dealer Member must identify in the disclosure:
- the class or type of client to which the disclosure applies,
- the class or type of securities to which the disclosure applies, and
- the date of the most recent changes to the disclosure.
- A Dealer Member must make the disclosure:
- publicly available on the Dealer Member’s website and clearly identify to clients where on the website the disclosure can be found, or
- if the Dealer Member does not have a website, provide the disclosure in writing to the client upon account opening.
- A Dealer Member must:
- review the disclosure on a frequency that is reasonable in the circumstances, and at a minimum on an annual basis, and
- promptly update the disclosure to reflect the Dealer Member’s current practices.
- If a Dealer Member makes any change to the disclosure, the Dealer Member must:
- for the website disclosure, identify and maintain the change on its website for a period of six months after the change has been made, or
- if the Dealer Member does not have a website, deliver the change to the client in writing no later than the 90th day after the change has been made.
3130. – 3139. Reserved.
There is no history log for this rule.
There is no history log for this rule.