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zeekayandHanzo Dev
70f6883235
A July commit removed eight papers on the premise "no license — DEX/non-custodial only". That premise is wrong: Lux operates an ATS, a broker-dealer, a transfer agent and a bank, and this material is resold at lux.financial. The merge that brought main in preserved the removal because the commit stated a reason, which is how a stale reason outlives the fact it rested on. Back, at the versions main carried — main never received the removal, so its copies are the later ones: the ATS architecture, the security-token standard, smart order routing, institutional custody, MPC custody, post-quantum securities, the SSB partnership and the CoinBridge brief. 83 files. Co-authored-by: Hanzo Dev <[email protected]>
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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