SEC Rule 606 Report – Scottrade Inc. – 2nd Quarter 2016
Scottrade Inc. posts two separate and distinct SEC Rule 606 reports that stem from orders entered on two separate platforms.
This report is for Scottrade's regular business line. Order routing information regarding Scottrade, Inc.’s clearing arrangement
with Interactive Brokers LLC can be found in the Quarterly Order Routing Disclosure section of the Trade Quality & Execution
page.
Order Routing Information
This section provides statistical and other information about orders which Scottrade routes to the marketplace for execution in
the following types of securities: New York Stock Exchange (“NYSE”) listed stocks; NASDAQ listed stocks; stocks listed on NYSE
MKT (formerly “NYSE Amex”) or regional exchanges; and Exchange-listed options. For each of these types of securities, this
section identifies the market centers most often selected by Scottrade and the percentage of various types of orders sent to
those market centers. This section also addresses Scottrade’s material relationships with market centers to which it routes
client orders.
NYSE Stocks
Route Venues
Total (%)
Market (%)
Limit (%)
Other (%)
Total (%)
100.00
24.91
23.86
51.23
Citadel Execution Services
22.67
40.72
6.63
21.37
KCG Americas LLC
18.79
21.26
4.24
24.36
NASDAQ
16.12
0.00
45.92
10.08
BATS (EDGX)
13.18
0.00
36.64
8.67
Two Sigma Securities LLC
10.50
5.91
1.05
17.14
G1 Execution Services
10.43
17.83
3.12
10.24
UBS Securities LLC
3.27
4.21
0.78
3.98
Citigroup Global Markets
3.19
4.10
0.68
3.91
*100.0% of customer orders were non-directed
Material Aspects of Scottrade’s Relationship with Execution Venues for NYSE Stocks
Scottrade, Inc. is an agency routing broker dealer. As such, Scottrade routes all client orders listed on the NYSE, NASDAQ, and
Regional Exchanges to select intermediaries and national stock Exchanges for execution. Scottrade receives payment from KCG
Americas LLC, Citigroup Global Markets, G1 Execution Services, UBS Securities LLC and Two Sigma Securities LLC for certain
types of orders. Payment for all National Market System (NMS) orders executed during the Second Quarter 2016 averaged at or
below $.00086 per share.
The principal shareholder of Scottrade, Inc.’s parent company is a shareholder of KCG Holdings, Inc., previously known as Knight
Capital Group, Inc. Scottrade, Inc. receives payment from KCG Americas LLC, a subsidiary of KCG Holdings, Inc., for orders in
securities listed on the NYSE, NASDAQ, and Regional Exchanges.
Scottrade, Inc. is an agency routing broker dealer. As such, Scottrade routes all client orders listed on the NYSE, NASDAQ, and
Regional Exchanges to select intermediaries and national stock Exchanges for execution. Scottrade receives payment from
Citadel Execution Services for certain types of orders. Payment can be variable based on marketability. Payment for all National
Market System (NMS) orders executed during the Second Quarter 2016 averaged at or below $.00120 per share.
Scottrade, Inc. is an agency routing broker dealer. As such, Scottrade routes all client orders listed on the NYSE, NASDAQ, and
Regional Exchanges to select intermediaries and national stock Exchanges for execution. Scottrade receives payment from BATS
(EDGX) and NASDAQ for certain types of orders. Payment is variable based on volume and marketability. Payment for all
National Market System (NMS) orders executed during Second Quarter 2016 averaged at or below $.00289 per share.
The Senior Vice President of Trading Services at Scottrade, Inc. is a member of the Board of Directors of BATS Exchange, Inc.
NASDAQ Stocks
Route Venues
Total (%)
Market (%)
Limit (%)
Other (%)
Total (%)
100.00
22.36
26.03
51.61
KCG Americas LLC
20.07
20.40
4.65
27.70
Citadel Execution Services
19.11
34.80
5.73
19.06
NASDAQ
15.36
0.00
42.45
8.35
BATS (EDGX)
14.79
0.00
40.46
8.26
G1 Execution Services
12.02
24.38
3.63
10.89
Two Sigma Securities LLC
10.01
4.85
0.86
16.85
Citigroup Global Markets
4.33
7.24
0.92
4.79
UBS Securities LLC
3.33
4.73
0.80
4.00
*100.0% of customer orders were non-directed
Material Aspects of Scottrade’s Relationship with Execution Venues for Nasdaq Stocks
Scottrade, Inc. is an agency routing broker dealer. As such, Scottrade routes all client orders listed on the NYSE, NASDAQ, and
Regional Exchanges to select intermediaries and national stock Exchanges for execution. Scottrade receives payment from KCG
Americas LLC, Citigroup Global Markets, G1 Execution Services, UBS Securities LLC and Two Sigma Securities LLC for certain
types of orders. Payment for all National Market System (NMS) orders executed during the Second Quarter 2016 averaged at or
below $.00086 per share.
The principal shareholder of Scottrade, Inc.’s parent company is a shareholder of KCG Holdings, Inc., previously known as Knight
Capital Group, Inc. Scottrade, Inc. receives payment from KCG Americas LLC, a subsidiary of KCG Holdings, Inc., for orders in
securities listed on the NYSE, NASDAQ, and Regional Exchanges.
Scottrade, Inc. is an agency routing broker dealer. As such, Scottrade routes all client orders listed on the NYSE, NASDAQ, and
Regional Exchanges to select intermediaries and national stock Exchanges for execution. Scottrade receives payment from
Citadel Execution Services for certain types of orders. Payment can be variable based on marketability. Payment for all National
Market System (NMS) orders executed during the Second Quarter 2016 averaged at or below $.00120 per share.
Scottrade, Inc. is an agency routing broker dealer. As such, Scottrade routes all client orders listed on the NYSE, NASDAQ, and
Regional Exchanges to select intermediaries and national stock Exchanges for execution. Scottrade receives payment from BATS
(EDGX) and NASDAQ for certain types of orders. Payment is variable based on volume and marketability. Payment for all
National Market System (NMS) orders executed during Second Quarter 2016 averaged at or below $.00289 per share.
The Senior Vice President of Trading Services at Scottrade, Inc. is a member of the Board of Directors of BATS Exchange, Inc
NYSE MKT and Other Regional Exchange-Listed Stocks
Route Venues
Total (%)
Market (%)
Limit (%)
Other (%)
Total (%)
100.00
25.35
25.82
48.83
KCG Americas LLC
24.86
26.56
5.39
34.27
Citadel Execution Services
18.25
33.37
4.67
17.58
BATS (EDGX)
17.86
0.00
51.23
9.49
NASDAQ
11.37
0.00
33.15
5.76
G1 Execution Services
10.65
22.12
3.05
8.72
Two Sigma Securities LLC
9.58
5.79
0.85
16.17
Citigroup Global Markets
3.75
6.38
0.89
3.90
UBS Securities LLC
2.54
2.04
0.29
3.98
*100.0% of customer orders were non-directed
Material Aspects of Scottrade’s Relationship with Execution Venues for NYSE MKT and Other Regional Exchange-Listed Stocks
Scottrade, Inc. is an agency routing broker dealer. As such, Scottrade routes all client orders listed on the NYSE, NASDAQ, and
Regional Exchanges to select intermediaries and national stock Exchanges for execution. Scottrade receives payment from KCG
Americas LLC, Citigroup Global Markets, G1 Execution Services, UBS Securities LLC and Two Sigma Securities LLC for certain
types of orders. Payment for all National Market System (NMS) orders executed during the Second Quarter 2016 averaged at or
below $.00086 per share.
The principal shareholder of Scottrade, Inc.’s parent company is a shareholder of KCG Holdings, Inc., previously known as Knight
Capital Group, Inc. Scottrade, Inc. receives payment from KCG Americas LLC, a subsidiary of KCG Holdings, Inc., for orders in
securities listed on the NYSE, NASDAQ, and Regional Exchanges.
Scottrade, Inc. is an agency routing broker dealer. As such, Scottrade routes all client orders listed on the NYSE, NASDAQ, and
Regional Exchanges to select intermediaries and national stock Exchanges for execution. Scottrade receives payment from
Citadel Execution Services for certain types of orders. Payment can be variable based on marketability. Payment for all National
Market System (NMS) orders executed during the Second Quarter 2016 averaged at or below $.00120 per share.
Scottrade, Inc. is an agency routing broker dealer. As such, Scottrade routes all client orders listed on the NYSE, NASDAQ, and
Regional Exchanges to select intermediaries and national stock Exchanges for execution. Scottrade receives payment from BATS
(EDGX) and NASDAQ for certain types of orders. Payment is variable based on volume and marketability. Payment for all
National Market System (NMS) orders executed during Second Quarter 2016 averaged at or below $.00289 per share.
The Senior Vice President of Trading Services at Scottrade, Inc. is a member of the Board of Directors of BATS Exchange, Inc
Exchange-Listed Options
Route Venues
Total (%)
Market (%)
Limit (%)
Other (%)
Total (%)
100.00
11.91
87.03
1.06
Citadel Execution Services
38.82
43.44
37.96
57.87
Wolverine Execution Services
21.35
17.47
22.01
10.29
Susquehanna Capital Group
11.51
13.27
11.29
9.69
Morgan Stanley
10.69
15.43
10.02
12.04
Citigroup Global Markets
9.63
10.39
9.52
10.11
BATS (BZX)
8.00
0.00
9.20
0.00
*100.0% of customer orders were non-directed
Material Aspects of Scottrade’s Relationship with Listed Option Market Centers
Scottrade receives payment from Citadel Execution Services for certain option orders routed to them for execution on an
option exchange. Payment for all orders executed during Second Quarter 2016 averaged at or below $0.30 per contract.
Scottrade receives payment from Citigroup Global Markets for certain option orders routed to them for execution on an option
exchange. Payment for all orders executed during Second Quarter 2016 averaged at or below $0.49 per contract.
Scottrade receives payment from Susquehanna Capital Group for certain option orders routed to them for execution on an
option exchange. Payment for all orders executed during Second Quarter 2016 averaged at or below $0.37 per contract.
Scottrade receives payment from Morgan Stanley & Co for certain option orders routed to them for execution on an option
exchange. Payment for all orders executed during Second Quarter 2016 averaged at or below $0.36 per contract.
Scottrade receives payment from Wolverine Execution Services for certain option orders routed to them for execution on an
option exchange. Payment for all orders executed during Second Quarter 2016 averaged at or below $0.47 per contract.
Scottrade receives payment from BATS Global Markets for certain option orders routed to them for execution on the BATS (BZX)
option exchange. Payment for all orders executed during Second Quarter 2016 averaged at or below $0.41 per contract.
The Senior Vice President of Trading Services at Scottrade, Inc. is a member of the Board of Directors of BATS Exchange, Inc.
Order Routing Information for Particular Orders under SEC Rule 606
U.S. Securities and Exchange Commission (SEC) rules require all brokerage firms to make publicly available quarterly reports
describing their order routing practices. These quarterly reports describe how and where customer orders are routed and are
available on our website or you may request a written copy by contacting your local Scottrade office. In addition to the
quarterly reports above, SEC rules also require brokerage firms, upon a client's request, to provide information regarding the
identity of the market center to which any client order was routed in the six months prior to the request, whether the order
was a directed or non-directed order, and the time of the transaction (if any) that resulted from the order. If you wish to
receive the foregoing routing information for any order(s), please contact your local Scottrade branch office or independent
investment advisor (if your account is a SAS account).
Definitions
Non-Directed Orders (%): The percentage of total orders that were non-directed orders.
Venue: Routing destination to which a certain percentage of total non-directed orders were sent.
Total (%): Percentage of total non-directed orders routed to a given venue.
Market (%): The percentage of all non-directed market orders routed to a given venue.
Limit (%): The percentage of all non-directed limit orders routed to a given venue.
Other (%): The percentage of all non-directed other orders routed to a given venue. Other orders include but are not limited to
stop-on-quote orders and stop-limit-on-quote orders.