Order Handling

Limit Order Handling - STXG’s system provides limit order protection in compliance with the SEC Limit Order Display Rule that market makers reflect their clients’ order in their quote. The system automatically executes or displays any held limit order up to 10,000 shares or $200,000 that are priced equal to or better than our quote or that will add to the size of the current quote unless the client requests that we do not display.

SEC Order Handling Rules - STXG’s system is programmed to maintain continual and ongoing compliance with all SEC Order Handling and Regulation NMS Rules automatically. A full suite of compliance reports are regularly reviewed by a compliance representative.

Trading Halts -When trading on the primary listing market is halted; STXG will not execute any client orders during the halt. The periods just before and after a trading halt may be considered as abnormal market conditions. Orders executed during this period are subject to review and may be cancelled or adjusted to reflect market conditions. Marketable orders received during a halt will be priced based on the re-opening market on the primary listing exchange.

Short Sales Discovery - In accordance with current industry regulations, STXG requires that all short sale orders received from non-member broker/dealers be accompanied by an indication that a stock locate has been performed and that the security is available for delivery by settlement date, or confirmed that the security can be borrowed for delivery by the settlement date.

Execution Quality Monitoring - STXG maintains a regular and rigorous review of order handling and execution. This department has access to numerous tools and reports designed specifically to review compliance with industry regulations and overall best practices on a daily and monthly basis. Historical execution quality statistics can be provided upon request.