To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. These requirements apply to new and current customers.
What this means for you: We will ask for the business name, business address, Employer Identification Number, and other information that allows us to identify the business and signatories. We may also ask to see other identifying documents showing existence of the business.
The Securities and Exchange Commission (“SEC”) requires all registered broker-dealers to disclose their policies regarding receipt of “payment for order flow”. The Commission defines “payment for order flow” as “any monetary payments, services, property, or other benefits that result in remuneration, compensation, or consideration to a broker or dealer from any broker or dealer, national securities exchange, registered securities association, or exchange member in return for the routing of customer orders by such broker or dealer to any broker or dealer, national securities exchange, registered securities association, or exchange member for execution, including but not limited to research, clearance, custody, products or services, reciprocal agreements for the provision of order flow adjustment of a broker or dealer’s unfavorable trading errors, effort to participate as underwriter in public offerings: stock loans or shared interest accrued thereon: discounts rebates, or any other reductions of or credits against any fee to, or expense or other financial obligation of, the broker or dealer routing a customer order that exceeds that fee, expense or other financial obligation”.
tZERO ATS generally does not negotiate payment for order flow, but the firm does receive rebates when adding (or removing) liquidity at certain exchanges and execution venues.
SEC Rule 606 (formerly known as Rule 11Ac1-6 under the Securities Exchange Act of 1934) requires all broker-dealers that route customer orders in certain equity and option securities to make publicly available quarterly reports that disclose how broker-dealers route their customers’ orders to enable customers to evaluate order routing practices.
tZERO ATS does not route customer orders. The Firm’s business is focused entirely on servicing other broker-dealer clients. The orders received from other broker-dealers are excluded from the Rule, and as such, tZERO ATS is not required to publish quarterly 606 disclosures.
The Financial Industry Regulatory Authority, Inc. offers investors information and education through the FINRA BrokerCheck Hotline at 800-289-9999 and FINRA website at www.finra.org. An investor brochure that includes information describing FINRA BrokerCheck is available on FINRA’s website.
As a member of SIPC and pursuant to FINRA Rule 2266, tZERO ATS discloses to new customers, and annually to all customers, that they may obtain information about SIPC, including the SIPC brochure, by contacting SIPC at the following address:
Securities Investor Protection Corporation
1667 K St. N.W., Suite 1000
Washington, DC 20006-1620
tZERO ATS is not responsible for any performance or communication issues relating to any third party technology including but not limited to order management or portfolio management systems.