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 “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 orders routed to the venues, to the extent applicable, sets forth certain types of payments received and/or fees paid to the venues, and discusses the material aspects of any relationships with the 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%20Financial%20Services%20Inc/378
Payment for Order Flow:
UBSFS does not base equities or options order routing decisions on the receipt of any order routing inducements. To the extent that any market center on their own volition, provides UBSFS with a rebate or similar payment, such payments (i) are not actively sought after by UBSFS; (ii) if received, are de minimus; and (iii) are not taken into consideration, nor do they influence UBSFS’s order routing practices which remain solely guided by UBSFS’s duty of best execution. UBSFS effectively manages any potential conflict of interest by (i) not seeking out or negotiating payments for order flow; and (ii) making order routing determinations wholly independently from any de minimus or incidental rebates or similar payments that UBSFS may receive.
You may visit the SEC web site for more information on the Disclosure of Order Execution and Routing Practices, Regulation NMS and interpretative frequently asked questions (Staff Legal Bulletin No. 13A).
If you have any questions regarding the routing of a specific order, please contact your Financial Advisor.