Order Routing Policy

 

SEC Rule 606 (formally known as Rule 11Ac1-6 under the Securities Exchange Act of 1934) requires all broker-dealers that route customer orders in equity and option securities to make publicly available quarterly reports that disclose the venues to which it routes "non-directed" orders in covered securities.  The vast majority of LSC's orders are routed to an exchange or ECN as selected by the customer.  However, when an order is routed to LSC's order desk, the decision where to send the customer's order is made by the firm.

 

It is LSC's policy to select the exchange, ECN or market maker, which is expected, because of the displayed quote, or otherwise, to provide the customer with the best possible execution.  Based on this policy, in the Second  Quarter of 2010, LSC routed customer orders as specified in the below charts:

 

















NYSE Listed Securities
Percentage Non-Directed orders 0.40%
Venue Percentage
Limit Orders
New York Stock Exchange, Inc. 64.70%
Nyse Arca 10.80%
Nasdaq 8.69%
Bats Trading 6.51%
Bats Trading-dark scan 0.61%
Chicago Stock Exchange, Inc 0.29%
Credit Suisse AES Algorithms Alias 0.17%
ATD Marketmakers 0.15%
Direct Edge Ecn (Edgx) 0.07%
Credit Suisse AES Algorithms 0.07%
Mercator Market Making Desk 0.05%
Cboe Stock Exchange 0.02%
Goldman Sachs Market Making Desk 0.01%
ATD Marketmakers PINGER 0.00%
Hudson Securities Market Making Desk 0.00%
Knight Market Making Desk 0.00%
Total Limit Orders 92.16%
Market Orders
New York Stock Exchange, Inc. 3.69%
Nyse Arca 3.34%
Nasdaq 0.79%
Bats Trading-dark scan 0.01%
Bats Trading 0.00%
Total Market Orders 7.84%
AMEX and Regional Exchanges
Percentage Non-Directed orders 0.16%
Venue Percentage
Limit Orders
Nyse Arca 63.43%
New York Stock Exchange, Inc. 4.46%
Nasdaq 10.25%
Mercator Market Making Desk 0.38%
Direct Edge Ecn (Edgx) 0.05%
Credit Suisse AES Algorithms Alias 0.68%
Credit Suisse AES Algorithms 0.06%
Chicago Stock Exchange, Inc 0.03%
Cboe Stock Exchange 0.03%
Bats Trading-dark scan 3.91%
Bats Trading 9.19%
ATD Marketmakers 0.73%
American Stock Exchange 0.69%
Total Limit Orders 93.88%
Market Orders
Nyse Arca 4.89%
Nasdaq 0.35%
Mercator Market Making Desk 0.30%
ATD Marketmakers 0.22%
Bats Trading 0.17%
Bats Trading-dark scan 0.06%
New York Stock Exchange, Inc. 0.06%
Credit Suisse AES Algorithms Alias 0.05%
Credit Suisse AES Algorithms 0.02%
Total Market Orders 6.12%
NASDAQ Listed Securities
Percentage Non-Directed orders 1.04%
Venue Percentage
Limit Orders
Nyse Arca 46.08%
Nasdaq 35.72%
Bats Trading-dark scan 4.55%
ATD Marketmakers 2.91%
Maxim Marketmaking Desk 2.65%
Bats Trading 0.92%
Credit Suisse AES Algorithms 0.62%
Chicago Stock Exchange, Inc 0.16%
Fidelity Dark Pool Scanner 0.14%
Mercator Market Making Desk 0.14%
Direct Edge Ecn (Edgx) 0.06%
Goldman Sachs Market Making Desk 0.05%
Credit Suisse AES Algorithms Alias 0.03%
ITG Posit Darkpool 0.03%
Essex Radez Marketmaking Desk 0.02%
New York Stock Exchange, Inc. 0.02%
Citadel Options Desk 0.01%
Direct Edge Ecn (Edga) 0.01%
Knight Market Making Desk 0.01%
Pipeline 0.01%
Total Limit Orders 94.14%
Market Orders
Nyse Arca 3.21%
Nasdaq 2.59%
Mercator Market Making Desk 0.02%
Bats Trading 0.01%
Goldman Sachs Market Making Desk 0.01%
New York Stock Exchange, Inc. 0.01%
Total Market Orders 5.86%
Option Contracts
Percentage Non-Directed orders 0.46%
Venue Percentage
Limit Orders
International Securities Exchange, LLC 71.36%
Chicago Board Options Exchange 9.58%
American Stock Exchange 6.08%
Philadelphia Options Exchange 4.83%
Nyse Arca 4.08%
Nasdaq 2.75%
Boston Options Exchange 0.92%
Citadel Options Desk 0.33%
Nasdaq Options Market 0.08%
Total Limit Orders 100.0%
Note: There were no "other" non-directed order types
in any of the above listed categories.
 
 


Lek Securities Corporation
One Liberty Plaza
52nd Floor
New York, NY 10006
212.509.2300