According to FINRA, T3 Trading Group, LLC was censured and fined $175,000 for failing to publish required quarterly reports about its handling of customer orders in National Market System (NMS) securities.

Rule 606(a) of Regulation NMS requires broker-dealers to publish quarterly reports disclosing information about how they route customer orders, including routing percentages, execution venues, payment-for-order-flow calculations, and material aspects of relationships with execution venues.

T3 Trading Group failed to publish any such reports from April 2020 to July 2021, a period of over a year. Subsequently, from July 2021 through April 2025, the firm published quarterly reports that contained none or very little of the required information.

The firm also failed to establish and maintain a supervisory system, including written supervisory procedures, reasonably designed to achieve compliance with Rule 606(a).

These disclosure requirements are fundamental to market transparency. Rule 606 reports help investors understand potential conflicts of interest in how their orders are routed and executed. Payment for order flow arrangements, for example, may create incentives for brokers to route orders to venues that pay the highest rebates rather than venues offering the best execution quality.

For investors, this case serves as a reminder to review your broker's Rule 606 reports, which should be publicly available on the firm's website. These reports provide insight into how your orders are handled and whether your broker may have conflicts of interest that could affect execution quality.