Order Routing Report

SEC 11Ac1-6 - ChoiceTrade, Inc. 4th Qtr, 2013

(Percentages of Total Non-Directed Orders Routed to Individual Route Venues)

ChoiceTrade has prepared this report pursuant to a U.S. Securities and Exchange Commission rule requiring all brokerage firms to make publicly available quarterly reports on their order routing practices. The report provides information on routing of "non-directed orders" - any order that the customer has not specifically instructed to be routed to a particular venue on behalf of its customers.

The report is divided into four sections: one for securities listed on the New York Stock Exchange and reported as a Network A eligible security; one for securities listed on the Nasdaq Stock Market; one for securities listed on the American Stock Exchange or regional exchanges and reported as a Network B eligible security; and one for exchange-listed options. For each section, this report identifies the venues most often selected by ChoiceTrade, sets forth the percentage of various types of orders routed to the venues, and discusses the material aspects of ChoiceTrade's relationship with the venues.

Securities Listed on New York Stock Exchange

Route Venues Total (%) Market (%) Limit (%) Other (%)
Total (%)
45
22
65
13
CITADEL
61
68
59
61
ARCA
20
0
30
0
WELLS FARGO
19
32
11
39

Securities Listed on The Nasdaq Stock Market

Route Venues Total (%) Market (%) Limit (%) Other (%)
Total (%) 38 12 81 7
CITADEL 62 74 59 72
ARCA 23 0 28 0
WELLS FARGO 15 26 13 28

Securities Listed on American Stock Exchange or Regional Exchanges

Route Venues Total (%) Market (%) Limit (%) Other (%)
Total (%)
80
4
93
3
CITADEL
57
71
57
79
ARCA
26
0
28
0
WELLS FARGO 17 29 15 21

Exchange-Listed Options

Route Venues Total (%) Market (%) Limit (%) Other (%)
Total (%)
100
6
89
5
AMEX
36
33
37
56
NSDQ
23
6
27
0
PHLX
14
27
13
21
BATS
12
6
14
0
CBOE
6
10
6
2
GEMINI
3
6
2
20
ISE
1
6
1
1
ARCA
1
1
0
0
BOX 1 2 0 0
NOBO 1 1 0 0
CBOE2 1 1 0 0
MIAX 1 1 0 0

Material Aspects of Relationship with Route Venues

I. Securities listed on the New York Stock Exchange:

CITADEL
ChoiceTrade receives payment for directing certain orders to Citadel. Payment ranges from zero to less than a penny per share depending on the type of order.

ARCA
ARCA pays subscribers a rebate of up to .0021 per executed share for NYSE orders that add liquidity to the ARCA book. According to the SEC rule, this rebate may be considered payment for order flow. ARCA also charges subscribers up to .003 for trades that remove liquidity from the ARCA book; up to .0035 for shares routed out; and odd-lot executions may be charged up to .03 per share.

WELLS FARGO
ChoiceTrade receives payment for directing certain orders to Wells Fargo. Payment ranges from zero to less than a penny per share depending on the type of order.

II. NASDAQ securities:

CITADEL
ChoiceTrade receives payment for directing certain orders to Citadel. Payment ranges from zero to less than a penny per share depending on the type of order.

ARCA
ARCA pays subscribers a rebate of up to .0021 per executed share for NYSE orders that add liquidity to the ARCA book. According to the SEC rule, this rebate may be considered payment for order flow. ARCA also charges subscribers up to .003 for trades that remove liquidity from the ARCA book; up to .0035 for shares routed out; and odd-lot executions may be charged up to .03 per share.

WELLS FARGO
ChoiceTrade receives payment for directing certain orders to Wells Fargo. Payment ranges from zero to less than a penny per share depending on the type of order.

III. Securities Listed on the American Stock Exchange or Regional Exchanges:

CITADEL
ChoiceTrade receives payment for directing certain orders to Citadel. Payment ranges from zero to less than a penny per share depending on the type of order.

WELLS FARGO
ChoiceTrade receives payment for directing certain orders to Wells Fargo. Payment ranges from zero to less than a penny per share depending on the type of order.

ARCA
ARCA pays subscribers a rebate of up to .0022 per executed share for NYSE orders that add liquidity to the ARCA book. According to the SEC rule, this rebate may be considered payment for order flow. ARCA also charges subscribers up to .003 for trades that remove liquidity from the ARCA book; up to .0035 for shares routed out; and odd-lot executions may be charged up to .03 per share.

IV. Exchange-Listed Options:

ChoiceTrade is charged a fee for directing certain orders and receives payment of zero to .85 per contract for certain other orders.

 

If you send a request via email to service@choicetrade.com, we will tell you the identity of the venue to which your orders were routed for execution in the six month prior to the request, whether the orders were directed orders or non-directed orders, and the time of transactions, if any, that resulted from such orders.

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