Disclosure of Order Routing Practices for Non-Directed Customer Orders
2nd Quarter Ending June 30, 2010
MB Trading 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 the routing of "non-directed orders" - any order that the customer has not specifically instructed to be routed to a particular venue [market center] for execution. For these non-directed orders, MB Trading has selected the execution venue on behalf of its customers.
Based on the design of the firm's proprietary order routing mechanism, most orders were routed to and executed by multiple venues. Therefore, the data below reflects the percentages of orders routed for execution at each market venue.
The report is divided into four sections: one for securities listed on the New York Stock Exchange; one for securities listed on The Nasdaq Stock Market; one for securities listed on the American Stock Exchange or regional exchanges; and one for exchange-listed options. For each section, this report identifies the venues most often selected by MB Trading, sets forth the percentage of various types of orders routed to the venues, and discusses the material aspects of MB Trading's relationship with the venues.
Unless otherwise indicated, MB Trading does not participate in any "Payment-for-order-flow" arrangements. Payment-for-order-flow is the cash or non-cash compensation paid to a securities brokerage for routing their orders to a particular market venue.
Securities Listed on New York Stock Exchange
| Summary Statistics: | |
| Non-directed orders as percentage of total customer orders | 32% |
| Market orders as percentage of total non-directed orders | 9.3% |
| Limit orders as percentage of total non-directed orders | 52% |
| Other orders as percentage of total non-directed orders | 6.1% |
| Venues Receiving Significant Percentage of Total Non-Directed Orders: | |
| 1. NYSE ARCA LLC | 12.1% |
| 2. The Nasdaq Stock Market, Inc | 82.1% |
| 3. Automated Trading Desk Financial Service LLC | 2.1% |
| 3. Citi Group Global Markets | 35.8% |
| 3. BATS Trading | 32.1% |
| Information Concerning Significant Venues | |
| 1. NYSE ARCA LLC | |
 Types of Orders Routed to Venue: |
|
| Market orders as percentage of total market orders |
6.8% |
| Limit orders as percentage of total limit orders |
17% |
| Other orders as percentage of total other orders |
38% |
Material aspects of relationships between MB Trading and market venues. |
|
| 2. The Nasdaq Stock Market, Inc | |
| Types of Orders Routed to Venue |
|
| Market orders as percentage of total market orders |
14.1% |
| Limit orders as percentage of total limit orders |
82.9% |
| Other orders as percentage of total other orders |
0.00% |
Material aspects of relationships between MB Trading and market venues. |
|
| 3. Automated Trading Desk Financial Service LLC | |
| Types of Orders Routed to Venue |
|
| Market orders as percentage of total market orders |
0.00% |
| Limit orders as percentage of total limit orders |
15.5% |
| Other orders as percentage of total other orders |
0.00% |
Material aspects of relationships between MB Trading and market venues. |
|
| 3. Citi Group Global Markets | |
| Types of Orders Routed to Venue |
|
| Market orders as percentage of total market orders |
47.2% |
| Limit orders as percentage of total limit orders |
26.8% |
| Other orders as percentage of total other orders |
8.1% |
Material aspects of relationships between MB Trading and market venues. |
|
Securities Listed On The Nasdaq Stock Market
| Summary Statistics: | ||
| Non-directed orders as percentage of total customer orders | 31.5% | |
| Market orders as percentage of total non-directed orders | 8.2% | |
| Limit orders as percentage of total non-directed orders | 20.2% | |
| Other orders as percentage of total non-directed orders |
28.7% |
|
| Venues Receiving Significant Percentage of Total Non-Directed Orders: | ||
| 1. NYSE ARCA LLC | 7.6% | |
| 2. Automated Trading Desk Financial Service LLC | 2.1% | |
| 5. The Nasdaq Stock Market, Inc | 14.6% | |
| 5. Citi Group Global Markets | 17.1% | |
| Information Concerning Significant Venues | ||
| 1. NYSE ARCA LLC | ||
| Types of Orders Routed to Venue: |
||
| Market orders as percentage of total market orders |
8.1% | |
| Limit orders as percentage of total limit orders |
1.8% | |
| Other orders as percentage of total other orders |
40.1% | |
Material aspects of relationships between MB Trading and market venues. |
||
| 2. Automated Trading Desk Financial Service LLC | ||
| Types of Orders Routed to Venue |
||
| Market orders as percentage of total market orders |
0.00% | |
| Limit orders as percentage of total limit orders |
6.1% | |
| Other orders as percentage of total other orders |
0.00% | |
| 3. Citi Group Global Markets | ||
| Types of Orders Routed to Venue |
||
| Market orders as percentage of total market orders |
25.4% | |
| Limit orders as percentage of total limit orders |
13.5% | |
| Other orders as percentage of total other orders |
0.00% | |
| 4. The Nasdaq Stock Market, Inc | ||
| Types of Orders Routed to Venue |
||
| Market orders as percentage of total market orders |
7.9% | |
| Limit orders as percentage of total limit orders |
14.2% | |
| Other orders as percentage of total other orders |
0.00% | |
Securities Listed on American Stock Exchange
| Summary Statistics: | ||
| Non-directed orders as percentage of total customer orders | 6.3% | |
| Market orders as percentage of total non-directed orders | 4.0% | |
| Limit orders as percentage of total non-directed orders | 2.8% | |
| Other orders as percentage of total non-directed orders | 1.7% | |
| Venues Receiving Significant Percentage of Total Non-Directed Orders: | ||
| 1. NYSE ARCA LLC | 3.1% | |
| 2. BATS Trading | 7.5% | |
| 4. The Nasdaq Stock Market, Inc | 2.5% | |
| 4. Citi Group Global Markets | 1.0% | |
| Information Concerning Significant Venues: | ||
| 1. NYSE ARCA LLC | ||
| Types of Orders Routed to Venue |
||
| Market orders as percentage of total market orders |
0.00% | |
| Limit orders as percentage of total limit orders |
6.1% | |
| Other orders as percentage of total other orders |
12.5% | |
Material aspects of relationships between MB Trading and market venues. |
||
| 2. BATS Trading | ||
| Types of Orders Routed to Venue |
||
| Market orders as percentage of total market orders |
8.4% | |
| Limit orders as percentage of total limit orders |
11% | |
| Other orders as percentage of total other orders |
0.00% | |
Material aspects of relationships between MB Trading and market venues. |
||
| 3. The Nasdaq Stock Market, Inc | ||
| Types of Orders Routed to Venue |
||
| Market orders as percentage of total market orders |
0.00% | |
| Limit orders as percentage of total limit orders |
4.1% | |
| Other orders as percentage of total other orders |
0.00% | |
Material aspects of relationships between MB Trading and market venues. |
||
| 3. Citi Group Global Markets | ||
| Types of Orders Routed to Venue |
||
| Market orders as percentage of total market orders |
5.2% | |
| Limit orders as percentage of total limit orders |
1.2% | |
| Other orders as percentage of total other orders |
0.00% | |
Material aspects of relationships between MB Trading and market venues. |
||
Exchange-Listed Options
| Summary Statistics: | |
| Non-directed orders as percentage of total customer orders | 9.9% |
| Market orders as percentage of total non-directed orders | 5.3% |
| Limit orders as percentage of total non-directed orders | 8.5% |
| Other orders as percentage of total non-directed orders | 0.00% |
| Venues Receiving Significant Percentage of Total Non-Directed Orders: | |
| 1. Citi Group Global Markets | 20.1% |
| 2. Penson Financial Services, Inc. | 0.00% |
| Information Concerning Significant Venues: | |
| 1. Citi Group Global Markets | |
| Types of Orders Routed to Venue |
|
| Market orders as percentage of total market orders |
9.7% |
| Limit orders as percentage of total limit orders |
11.3% |
| Other orders as percentage of total other orders |
0.00% |
Material aspects of relationships between MB Trading and market venues. |
|
| Clients may request a written copy of this disclosure or a detailed report identifying their specific order routing information for the previous six months prior to the request. |