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Restructured from flat .tex/.pdf files into per-paper subdirectories. Added Antje Worring as co-author on all papers. Synced PDFs to pdfs/ for download site.
39 lines
1.5 KiB
TeX
39 lines
1.5 KiB
TeX
\section{Regulatory Compliance}
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\label{sec:regulatory}
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\subsection{FINRA Rule 5310: Best Execution}
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The SOR satisfies FINRA Rule 5310 by:
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\begin{enumerate}[nosep]
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\item Evaluating execution quality across all reasonably available venues.
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\item Documenting the routing decision and execution quality metrics for each order.
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\item Periodically reviewing venue quality statistics and adjusting routing weights.
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\item Disclosing order routing practices per Rule 606 (formerly Rule 11Ac1-6).
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\end{enumerate}
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\subsection{Regulation NMS: Order Protection}
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For NMS-eligible securities (listed equities accessed via Alpaca or Interactive Brokers), the SOR complies with Regulation NMS Rule 611 (Order Protection Rule) by:
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\begin{itemize}[nosep]
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\item Never executing at a price inferior to a protected quote displayed by another venue.
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\item Routing through to the displaying venue when a better protected quote exists.
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\item Maintaining a consolidated quote that reflects all protected quotes.
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\end{itemize}
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\subsection{Audit Trail}
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Every routing decision is logged with:
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\begin{itemize}[nosep]
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\item All venue quotes considered.
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\item Compliance check results per venue.
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\item Score computation for each eligible venue.
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\item Final allocation decision.
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\item Execution result and fill quality.
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\end{itemize}
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These records are stored in the \texttt{audit\_logs} collection and exported to CAT (Consolidated Audit Trail) per SEC Rule 613 \cite{lux-ats-architecture}.
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