UBS Financial Services Inc. (“UBSFS”) has prepared this report pursuant to a U.S. Securities and Exchange Commission rule requiring all brokerage firms to make publicly available quarterly reports on their order routing practices. The report provides information on the routing of held, “non-directed orders” – any order that the customer has not specifically instructed to be routed to a particular venue for execution. For these non-directed orders, UBSFS has selected the execution venue on behalf of its customers.
The report is divided into 3 sections: (1) NMS stocks that are included in the S&P 500 Index; (2) NMS stocks that are not included in the S&P 500 Index; and (3) NMS securities that are options. For each section, the report identifies the venues most often selected by UBSFS, sets forth the percentage of various types of non-directed orders routed to these venues and discusses the material aspects of UBSFS’s relationship, if any, with these venues.
UBSFS’s SEC Rule 606 report can be found at https://mta.ihsmarkit.com/app-v2/public-report-library/public-report-library-view/UBS Financial Services Inc/378
Payment for Order Flow:
UBSFS does not accept payment for order flow from other broker-dealers. UBSFS may receive payment in the form of rebates from certain exchanges. These payments generally offset fees for accessing orders or for other services provided by exchanges. From time to time, the amount of rebates UBSFS receives from an exchange may exceed the amount of fees that UBSFS is charged by such exchange. In these limited circumstances, the receipt of net payments from an exchange would be considered payment for order flow. UBSFS does not base equities or options order routing decisions on the receipt of payment for order flow or any other order routing inducements. To the extent that any exchange provides UBSFS with a rebate or similar payment, such payments: (i) are provided according to exchange fee schedules and rules approved by the SEC; (ii) are not actively solicited or sought after by UBSFS; (iii) if received, are de minimus; and (iv) do not influence UBSFS’s order routing practices, which are determined by UBSFS’s duty of best execution. UBSFS effectively manages this potentialconflict of interest by (i) providing customer disclosures regarding its payment for order flow practices; (ii)not seeking out or negotiating payments for order flow; and (iii) making order routing determinations wholly independently from any rebates or similar payments that UBSFS may receive.
You may visit the following link for more information on SEC Rule 606 https://www.ubs.com/us/en/wealth-management.html , Best Execution Statement and interpretative frequently asked questions https://www.sec.gov/tm/faq-rule-606-regulation-nms
If you have any questions regarding the routing of a specific order, please contact your Financial Advisor.