Financial Information Forum Opposes Order Routing Disclosures

The Financial Information Forum ("FIF") reiterated its opposition to a FINRA proposal requiring new order-routing disclosures for OTC and National Market System ("NMS") equity securities orders.

As previously covered, the FINRA proposal would require broker-dealers to (i) publish order routing reports for orders in OTC equity securities and (ii) submit order-routing reports for both OTC equity securities and NMS Securities to FINRA to be published on the FINRA website.

FIF asserted that the proposed "look-through" requirement would prevent retail investors from comparing reports submitted by reporting firms. FIF proposed an alternative requirement that would (i) allow retail investors to compare data reports and (ii) provide "clear and accurate" disclosures.

FIF urged the SEC to reject FINRA's proposed amendment, saying that a "misleading disclosure is worse than no disclosure."