Order Entry and Execution Practices

What this video covers

• Why per-order and per-report pricing can create an incentive to manufacture extra orders or transaction reports
• The difference between splitting one order into smaller orders for execution and splitting one execution into smaller executions for transaction reporting
• Why both the member and the associated person are bound by this rule
• How the intent-or-effect standard applies when a split was not consciously planned
• What counts as a monetary or in-kind amount, including credits, commissions, gratuities, payments for fees, fee rebates, and other payments of value
• Why the benefit must be received by the member or associated person as a result of the executions or transaction reports
• How the primary-purpose limitation protects legitimate order splitting and why this rule has no subsections or Supplementary Material