SoFi Securities, LLC (SoFi) is committed to ensuring our members receive trade executions with the best execution prices available at the time of execution. SoFi Securities, LLC does not internalize member orders through any owned subsidiary.
SoFi Securities, LLC directs all trades to Apex Clearing Corporation, Inc. (Apex) for execution, and Apex makes all order routing decisions on SoFi’s behalf. Apex routes 100% of our orders to broker-dealers or market centers for execution. These market centers to which our clearing firm routes orders may include dealers who make markets in these securities.
The SoFi team has internal and external processes to monitor and review a defined set of execution quality metrics to evaluate execution performance for all our members’ orders. This process involves generating, reviewing, and evaluating order routing and execution reports to ensure member orders receive the best possible execution given the prevailing market conditions and order details. Additionally, this allows the SoFi team to identify and quantify opportunities to work with Apex to implement corrective actions and iteratively improve order routing and execution.
The SEC adopted Rules 605 and 606 to standardize and improve public disclosure of execution and routing practices. SoFi Securities, LLC generates these reports for our members and posts them at the links below for members to review.
The disclosure of SEC-Required Order Execution Information, SEC Rule 605, requires market centers and large broker-dealers to disclose monthly data about the quality of their trade executions. As a larger broker-dealer, SoFi meets the rule’s requirement and is generating these reports. Each monthly report will disclose execution quality data based on the previous month’s trading activity. SoFi-generated reports can be accessed from the following link: https://public.s3.com/rule605/sofi/
The Joint Industry Plan Establishing Procedures under Rule 605 of Regulation NMS sets the uniform standards for the format and content of these monthly electronic reports on trade execution quality. The standardized format field definitions can be found at the link above.
The Securities and Exchange Commission (SEC) adopted Rule 606 of Regulation NMS that requires broker-dealers, such as SoFi Securities LLC, to disclose information on order routing practices for equity and options orders. This is presented through quarterly reports, broken out by month, that present an overview of order routing practices and the relationship between certain venues where orders are routed.
SoFi Securities, LLC directs all trades to Apex for execution, and Apex makes all order routing decisions on SoFi’s behalf. Rebates and order flow revenue shares are based on the third-party order flow rebates or revenue actually received by Apex in respect of the orders of SoFi members executed through the applicable route or venue. Should SoFi’s execution activity generate exchange rebates, they are credited against execution and exchange expenses incurred by Apex within the same monthly billing cycle. The revenue generated by order flow is split between SoFi and Apex. With respect to payment for order flow, the specific share rates the firm receives from Apex Clearing may be viewed in the following charts: https://public.s3.com/rule606/sofi/
The Apex team has its own internal and external processes to monitor and review a defined set of execution quality metrics to evaluate routing and execution performance for all orders they process. In accordance with SEC Rule 606, Apex generates similar reports that identify the venues to which Apex directed customer Equity and Option orders for execution, along with material aspects of Apex’s relationship with each of those venues. These reports may be viewed in the following charts: https://public.s3.com/rule606/apex/
The reports are made available to the public free of charge for each calendar quarter and published no later than one month after the end of the quarter.
In accordance with SEC Rule 606(b), you may request a report identifying the venue to which your Equity and Options orders were routed for execution for the six months prior to the request. Please direct these requests to https://support.sofi.com/hc/en-us/.