Consistent with the overriding principle of best execution, we generally route orders for National Market System (NMS) and Over-the-Counter (OTC) equity securities as well as options to trading centers, including exchanges, securities dealers/market makers, and alternative trading systems such as ECNs. Although Scottrade does not accept client instructions to route orders to a particular destination, Scottrade takes a number of factors into consideration in determining where to route customers' orders, including quality of executions relative to the National Best Bid and Offer (NBBO) at any one market center, the speed of execution, the availability of efficient and reliable order handling capability, the liquidity offered by the trading center, the level of service provided, and the cost of executing orders. We may receive remuneration from a market center, but remuneration is only a factor when all other factors affecting best execution are equal. 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 at www.scottrade.com/routing. You may request a written copy by contacting your local Scottrade team, Registered Investment Advisor or Guidance Solutions Group representative.
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 team, investment advisor. In exchange for directing client orders to certain market centers for execution, we receive remuneration such as per-share arrangements, liquidity rebates or profit sharing arrangements. The source and amount of any compensation received by us in connection with your transaction will be disclosed upon written request. You understand that any remuneration that we may receive for routing orders through various market centers is considered a reduction in our costs and will not accrue to your Account.