Payment for Order Flow

The Securities and Exchange Commission announces the adoption of Rule 11Ac1-3 and amendments to Rule 10b-10 under the Securities Exchange Act of 1934 which, together, require enhanced disclosure of payment for order flow practices on customer confirmations, and account statements, as well as upon opening new accounts. The new Rule and amendments to Rule 10b-10 are designed to provide relevant information to customers regarding factors influencing the routing of their orders. The new Rule and amendments to Rule 10b-10 also will serve to enhance investor protection and further competition for retail orders by enabling customers to evaluate more effectively the markets to which their orders are routed.

Agency Contact: Jill W. Ostergaard, Attorney, 202/942-3197, Branch of the National Market System, Office of Market Supervision, Division of Market Regulation, Securities and Exchange Commission, 450 Fifth Street NW., Mail Stop 5-1, Washington, DC 20549. For interpretation of Rule 10b-10 after March 1, 1996, please contact the Office of the Chief Counsel, 202/942-0073, Division of Market Regulation, Securities and Exchange Commission, 450 Fifth Street NW., Mail Stop 7-10, Washington, DC 20549. For interpretation of Rule 11Ac1-3 please contact the Office of Market Supervision, Division of Market Regulation, 202/942-3197.