Definition of Terms

Definition of Terms Used in SEC Rule 606 Quarterly Reporting

  • Customer Order
  • An order to buy or sell a "covered security" that is not for the account of a broker-dealer. Large Order Exclusion: For reporting purposes, the rule excludes any order for a quantity of a security having a market value of at least $50,000 for options orders.
  • Covered Securities
  • All Consolidated Tape Association ("CTA") eligible securities of both Network A and Network B, as well as all NASDAQ-listed securities. Includes: Exchange-listed equities, NASDAQ National Market equities; NASDAQ SmallCap equities, American Depositary Receipts (ADRs), and listed options. Exclusions: Equities quoted on the OTC Bulletin Board operated by the NASDAQ Stock Market, Inc. 
  • Directed Order 
  • An order that the customer specifically instructed the broker or dealer to route to a particular venue for execution. 
  • Non-Directed Order 
  • Any customer order other than a directed order. 
  • Market Order 
  • An order to buy or sell at the prevailing best market price available, without conditions or limits. 
  • Limit Order 
  • An order to buy or sell where the customer limits the acceptable buying or selling price. A limit order can be executed only at the specified price or better. Marketable limit orders (a buy order with a limit price equal to or greater than the consolidated best offer at the time of order receipt, or a sell order with a limit price equal to or less than the consolidated best bid at the time of order receipt) are classified as limit orders under the reporting requirements of Rule 606. 
  • Other Orders 
  • Orders for which the customer requests special handing, including orders submitted with stop prices, all or none orders, fill or kill orders, orders that must be executed on a particular tick or bid (such as non-exempt short sale orders), not held orders, and orders for other than regular settlement.