Wilson-Davis & Co., Inc.
SEC-Required Report on Routing of Customer Orders
SEC Rule 606 requires all broker-dealers that route non-directed customer orders in equity securities on a held basis and non-directed customer orders in option securities to make publicly available quarterly reports (broken out for S&P 500 stocks, other NMS stocks, and options) that, among other things, identify for each category the following:
Consistent with SEC guidance, WDCO provides this information for venues to which it routes 5% or more of order flow. Additionally, upon written request, WDCO will provide you with details regarding the destination to which your orders (for up to six months preceding your request) were routed for execution. WDCO will also provide you, upon request, with information regarding the handling of any “not held” orders you might place with WDCO, consistent with the requirements of Rule 606(b)(3). WDCO routes over 95% of it’s routable customer orders itself. WDCO’s order routing decisions are based on a number of factors including the size of the order, the opportunity for price improvement at the market center, and the quality of order executions that WDCO receives from such market centers. To access WDCO’s public order-routing reports for these trades please visit FIS Best Execution Analysis. A small percentage of WDCO customers are introduced on a fully disclosed to Hilltop Securities Inc. for clearing. WDCO transmits these equity and option customer orders to Hilltop and relies on Hilltop Securities to route the orders. These orders amount to approximately less than 5% of WDCO’s routable orders. WDCO does not receive payment for order flow from any orders introduced to and routed by Hilltop. WDCO relies and on Hilltop’s 606 reports and disclosures for these orders and incorporates them by reference. They are available here: Hilltop Securities Trading Agency.