Preview, not a Rule 5310 review quarter. Routing and PFOF come from 2026Q2 (606, latest month in that quarter); execution quality comes from 2026Q3 amended 605 benchmarks. Route shares from one period are applied to benchmarks from another.
Under FINRA Rule 6151, this broker-dealer adopts by reference the 606 routing reports of its clearing firm(s): NATIONAL FINANCIAL SERVICES LLC. Under FINRA Rule 5310.09(c), introducing broker-dealers must independently examine execution quality and compare clearing firm routing against competing market centers.
S.L. REED & COMPANY (CRD #40744) — SEC Rule 606 Order Routing & FINRA Rule 5310.09 Execution Quality Report
Executive Best Execution & Order Routing Analysis
S.L. REED & COMPANY (CRD #40744) operates as an introducing broker-dealer adopting the SEC Rule 606 order routing disclosures of NATIONAL FINANCIAL SERVICES LLC. Under FINRA Rule 5310.09(c), introducing firms that rely on clearing firm routing arrangements remain obligated to independently examine execution quality and compare results against competing market centers. In 2026Q2, non-directed customer order flow was routed primarily to Citadel Securities LLC (22.0%), Dash Financial Technologies LLC (19.4%), Global Execution Brokers, LP (18.4%).
During 2026Q2, the firm reported $1,087,739.00 in total net payment for order flow (PFOF) and execution rebates received across its order routing arrangements. Disclosed net payment rates for market orders averaged 3.56 ¢ and marketable limit orders averaged 3.05 ¢. FINRA Rule 5310.09 requires rigorous surveillance of potential conflicts of interest when order routing decisions coincide with financial remuneration from execution venues.
Our mix-adjusted benchmark analysis flagged 162 material differences across the 144 Amended Rule 605 order size and security buckets where S.L. REED & COMPANY's routed execution trailed competing peer benchmarks by more than 1.0 basis points. Under FINRA Rule 5310.09, broker-dealers must conduct regular and rigorous committee reviews comparing execution quality achieved against competing market centers they do not route to. Each flagged competing-market difference requires documented supervisory disposition and committee review in the firm's permanent compliance records.
SEC Rule 606 Order Routing Summary
Disclosed non-directed customer order routing shares, total PFOF remuneration, and net rates by execution venue.
| Execution Venue | Route % | Disclosed PFOF (USD) | Net Rate (¢/100 sh) |
|---|---|---|---|
| Citadel Securities LLC (CDRG) | 22.0% | $359,570.00 | 7.95 ¢ |
| Dash Financial Technologies LLC | 19.4% | $124,107.00 | 25.97 ¢ |
| Global Execution Brokers, LP | 18.4% | $52,056.00 | 26.89 ¢ |
| Virtu Americas, LLC (NITE) | 17.4% | $135,883.00 | 2.41 ¢ |
| Wolverine Execution Services LLC | 16.5% | $76,685.00 | 22.26 ¢ |
| G1 Execution Services, LLC (ETMM) | 16.5% | $136,969.00 | 2.96 ¢ |
| CrossStream ATS (XSTM) | 14.3% | $0.00 | 0.00 ¢ |
| Jane Street Capital, LLC (JNST) | 10.8% | $67,346.00 | 2.28 ¢ |
| NYSE Arca Options | 8.0% | $59,499.00 | 28.03 ¢ |
| CBOE Options Exchange | 7.3% | $0.00 | -25.11 ¢ |
| HRT Financial LP (HRTF) | 5.8% | $44,120.00 | 2.66 ¢ |
| CBOE BZX Options Exchange, Inc. (BATS) | 5.0% | $2,243.00 | 28.60 ¢ |
| Goldman, Sachs and Co. LLC (GSCO) | 2.7% | $22,002.00 | 2.97 ¢ |
| New York Stock Exchange | 2.7% | $0.00 | -16.24 ¢ |
| Nasdaq Stock Market | 2.6% | $17,860.00 | -9.18 ¢ |
| Two Sigma Securities, LLC (SOHO) | 1.8% | $13,422.00 | 4.03 ¢ |
| UBS Securities, LLC (UBSS) | 1.6% | $0.00 | 0.00 ¢ |
| NYSE Arca | 1.5% | $1,359.00 | -24.51 ¢ |
S&P 500 Proxy × Market • $1k–$5k (ROUND)
Full execution metrics for routed flow against the mix-adjusted peer benchmark and competing market centers. (282,159 covered orders in tier)
| Role | Market Center | Routing Share (606) | PFOF Rate (¢/100) | NPI (bps) | Peer Bench (bps) | Fill Rate | Shortfall vs Bench |
|---|---|---|---|---|---|---|---|
| Routed Venue | G1 Execution Services, LLC (ETMM) | 15.8% | 0.00 ¢ | 1.9 bps | 2.0 bps | 100.0% | -0.2 bps |
| Routed Venue | HRT Financial LP (HRTF) | 6.5% | 0.00 ¢ | 2.1 bps | 2.0 bps | 98.8% | 0.2 bps |
| Routed Venue | Jane Street Capital, LLC (JNST) | 16.2% | 0.00 ¢ | 1.5 bps | 2.0 bps | 79.0% | -0.5 bps |
| Routed Venue | Virtu Americas, LLC (NITE) | 18.6% | 0.00 ¢ | 1.8 bps | 2.1 bps | 92.3% | -0.3 bps |
| Routed Venue | UBS Securities, LLC (UBSS) | 1.6% | 0.00 ¢ | 1.7 bps | 2.0 bps | 92.3% | -0.3 bps |
| Benchmark | Mix-Adjusted Peer Benchmark | — | — | 2.0 bps | 2.0 bps | 93.1% | — |
| Competing Venue | Competing venue A | — | — | 3.5 bps | 2.0 bps | — | — |
| Competing Venue | Competing venue B | — | — | 1.8 bps | 2.0 bps | — | — |
Flagged Competing-Market Differences (38 Locked Buckets)
Scored execution buckets requiring committee evaluation and supervisory disposition under FINRA Rule 5310.09.
Complete Your FINRA Rule 5310.09 Best Execution Review
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