Fidelity606 Rule

FIDELITY BROKERAGE SERVICES LLC
900 Salem Street
Smithfield, RI 02917
SEC Rule 606 Quarterly Report for the Quarter Ending December 31, 2013
National Financial Services LLC (NFS), an affiliated broker-dealer of Fidelity Brokerage Services LLC, has
prepared this report pursuant to U.S Securities and Exchange Commission Rule 606 which requires brokerdealer firms to make publicly available quarterly reports on their routing practices. This 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 for execution. For these non-directed orders, NFS has selected
the execution venue on behalf of its customers.
The report is divided into four sections:
1. Securities listed on the New York Stock Exchange;
2. Securities listed on the Nasdaq Stock Market;
3. Securities listed on the NYSE MKT or regional exchanges; and
4. Exchange listed options
For each section, this report identifies the venues most often selected by NFS, sets forth the percentage
of various types of orders routed to the venues and discusses the material aspects of the broker-dealer's
relationship with the venues.
1. New York Stock Exchange
NYSE Summary Statistics :
Non-directed orders as percentage of total customer orders
Market orders as percentage of total non-directed orders
Limit orders as percentage of total non-directed orders
Other orders as percentage of total non-directed orders
97.51%
48.50%
48.18%
3.32%
Venues Receiving Significant Percentage of Total Non-Directed Orders :
Venue
1.
2.
3.
4.
5.
6.
KCG Americas LLC
National Financial Services LLC
Citadel Securities LLC
Goldman, Sachs & Co.
Direct Edge Exchange
Two Sigma Securities, LLC
Total
29.81%
25.15%
13.51%
9.20%
7.22%
7.03%
Total Market Orders
37.36%
9.46%
18.00%
15.99%
0.00%
11.10%
Total Limit Orders
Total Other Orders
20.11%
42.69%
8.05%
3.00%
14.98%
3.24%
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60.19%
Less than 0.01%
27.07%
0.00%
0.00%
2.71%
Material Aspect of Relationship with Venue
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Fidelity Brokerage Services LLC (FBS), through its affiliated broker-dealer National Financial Services LLC (NFS), received payment from
KCG Americas LLC for directing listed equity order flow to this venue. Payment received averaged $0.00090 per share for order flow
executed in the fourth quarter 2013.
FBS routes listed equity order flow to Cross Stream ATS for crossing opportunities. Cross Stream is a registered ATS operated by National
Financial Services LLC, an affiliate of FBS.
FBS, through its affiliated broker-dealer NFS, received payment from Citadel Securities, LLC for directing listed equity order flow to this venue.
Payment received averaged $0.00055 per share for order flow executed in the fourth quarter 2013.
FBS, through its affiliated broker-dealer NFS, received payment from Goldman Sachs & Co. for directing listed equity order flow to this venue.
Payment received averaged $0.00044 per share for order flow executed in the fourth quarter 2013
FBS, through its affiliated broker-dealer NFS, received a credit on average of $0.0031 per share for each order routed by it to Direct Edge
Exchange that added liquidity to Direct Edge Exchange and which subsequently executed. FBS was charged fees on average of $0.0024 per
share for each order that removed liquidity from Direct Edge Exchange.
FBS, through its affiliated broker-dealer NFS, received payment from Two Sigma Securities, LLC for directing listed equity order flow to this
venue. Payment received averaged $0.00050 per share for order flow executed in the fourth quarter 2013.
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2. Nasdaq Stock Market
Nasdaq Summary Statistics :
Non-directed orders as percentage of total customer orders
Market orders as percentage of total non-directed orders
Limit orders as percentage of total non-directed orders
Other orders as percentage of total non-directed orders
97.15%
44.08%
52.03%
3.89%
Venues Receiving Significant Percentage of Total Non-Directed Orders :
Venue
1.
2.
3.
4.
5.
6.
National Financial Services LLC
KCG Americas LLC
Citadel Securities LLC
Direct Edge Exchange
Goldman, Sachs & Co.
Two Sigma Securities, LLC
Total
26.63%
25.82%
16.84%
8.24%
7.64%
6.79%
Total Market Orders
10.22%
31.77%
25.72%
0.00%
14.44%
11.19%
Total Limit Orders
Total Other Orders
42.52%
16.82%
10.47%
15.84%
2.45%
3.25%
Less than 0.01%
78.95%
1.28%
0.00%
0.00%
4.20%
Material Aspect of Relationship with Venue
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FBS routes NASDAQ equity order flow to Cross Stream ATS for crossing opportunities. Cross Stream is a registered ATS operated by
National Financial Services LLC, an affiliate of FBS
Fidelity Brokerage Services LLC (FBS), through its affiliated broker-dealer National Financial Services LLC (NFS), received payment from
KCG Americas LLC for directing Nasdaq equity order flow to this venue. Payment received averaged $0.00090 per share for order flow
executed in the fourth quarter 2013.
FBS, through its affiliated broker-dealer NFS, received payment from Citadel Securities, LLC for directing Nasdaq equity order flow to this
venue. Payment received averaged $0.00055 per share for order flow executed in the fourth quarter 2013
FBS, through its affiliated broker-dealer NFS, received a credit on average of $0.0031 per share for each order routed by it to Direct Edge
Exchange that added liquidity to Direct Edge Exchange and which subsequently executed. FBS was charged fees on average of $0.0024 per
share for each order that removed liquidity from Direct Edge Exchange
FBS, through its affiliated broker-dealer NFS, received payment from Goldman Sachs & Co. for directing Nasdaq equity order flow to this
venue. Payment received averaged $0.00044 per share for order flow executed in the fourth quarter 2013.
FBS, through its affiliated broker-dealer NFS, received payment from Two Sigma Securities, LLC for directing Nasdaq equity order flow to this
venue. Payment received averaged $0.00050 per share for order flow executed in the fourth quarter 2013.
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3. NYSE MKT or Regional Exchanges
NYSE MKT or Regional Summary Statistics :
Non-directed orders as percentage of total customer orders
Market orders as percentage of total non-directed orders
Limit orders as percentage of total non-directed orders
Other orders as percentage of total non-directed orders
96.74%
55.12%
40.98%
3.90%
Venues Receiving Significant Percentage of Total Non-Directed Orders:
Venue
1.
2.
3.
4.
5.
6.
KCG Americas LLC
Citadel Securities LLC
National Financial Services LLC
Goldman, Sachs & Co.
Direct Edge Exchange
Two Sigma Securities, LLC
Total
24.37%
22.53%
19.66%
16.79%
5.22%
4.32%
Total Market Orders
28.02%
30.01%
4.20%
26.68%
0.00%
6.66%
Total Limit Orders
Total Other Orders
16.21%
11.34%
42.33%
5.08%
12.74%
1.47%
58.46%
34.32%
Less than 0.01%
0.00%
0.00%
1.04%
Material Aspect of Relationship with Venue






Fidelity Brokerage Services LLC (FBS), through its affiliated broker-dealer National Financial Services LLC (NFS), received payment from KCG
Americas LLC for directing listed equity order flow to this venue. Payment received averaged $0.00090 per share for order flow executed in the
fourth quarter 2013.
FBS, through its affiliated broker-dealer NFS, received payment from Citadel Securities, LLC for directing listed equity order flow to this venue.
Payment received averaged $0.00055 per share for order flow executed in the fourth quarter 2013.
FBS routes listed equity order flow to Cross Stream ATS for crossing opportunities. Cross Stream is a registered ATS operated by National
Financial Services LLC, an affiliate of FBS.
FBS, through its affiliated broker-dealer NFS, received payment from Goldman Sachs & Co. for directing listed equity order flow to this venue.
Payment received averaged $0.00044 per share for order flow executed in the fourth quarter 2013.
FBS, through its affiliated broker-dealer NFS, received a credit on average of $0.0031 per share for each order routed by it to Direct Edge
Exchange that added liquidity to Direct Edge Exchange and which subsequently executed. FBS was charged fees on average of $0.0024 per share
for each order that removed liquidity from Direct Edge Exchange.
FBS, through its affiliated broker-dealer NFS, received payment from Two Sigma Securities, LLC for directing listed equity order flow to this venue.
Payment received averaged $0.00050 per share for order flow executed in the fourth quarter 2013.
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4. Exchange Listed Options
Exchange Listed Options Summary Statistics :
Non-directed orders as percentage of total customer orders
Market orders as percentage of total non-directed orders
Limit orders as percentage of total non-directed orders
Other orders as percentage of total non-directed orders
98.78%
27.63%
71.45%
0.92%
Venues Receiving Significant Percentage of Total Non-Directed Orders :
Venue
1.
2.
3.
4.
5.
6.
7.
8.
Nasdaq Options Market
The Chicago Board Options Exchange
NASDAQ OMX PHLX
The International Securities Exchange
NYSE Amex Options
NYSE Arca Options
BATS Options Exchange, Inc.
The Boston Option Exchange
Total
25.48%
22.44%
11.49%
11.41%
9.46%
5.91%
5.64%
5.09%
Total Market Orders
2.45%
49.79%
14.89%
8.74%
4.62%
1.16%
0.56%
14.76%
Total Limit Orders
34.72%
11.39%
9.86%
12.58%
11.40%
7.83%
7.68%
1.42%
Total Other Orders
0.00%
58.68%
35.85%
0.80%
4.03%
0.04%
Less than 0.01%
0.01%
Material Aspect of Relationship with Venue
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Fidelity Brokerage Services LLC (FBS), through its affiliated broker-dealer National Financial Services LLC (NFS), routes orders in exchange
listed options to one or more broker-dealer intermediaries, which in turn use smart order routing technology to seek the best execution
available in the market. Payments received from these broker-dealer intermediaries averaged a blended rate of $.22 per contract.
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Note: Column Heading Definitions
Venue - Routing destination to which a significant percentage of total non-directed orders
Total - Total percent of all non-directed orders routed to this venue.
Total Market Orders - Percent of all non-directed market orders routed to this venue.
Total Limit Orders - Percent of all non-directed limit orders routed to this venue.
Total Other Orders - Percent of all non-directed other orders routed to this venue. Other orders are
orders not specifically designated market or limit, such as stop orders.
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