FIDELITY BROKERAGE SERVICES LLC 900 Salem Street

FIDELITY BROKERAGE SERVICES LLC
900 Salem Street
Smithfield, RI 02917
SEC Rule 606 Quarterly Report for the Quarter Ending December 31, 2014
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
97.54%
50.53%
44.95%
4.51%
Venues Receiving Significant Percentage of Total Non-Directed Orders :
Venue
1.
2.
3.
4.
5.
6.
KCG Americas LLC
Citadel Securities LLC
Direct Edge Exchange
Goldman, Sachs & Co.
UBS Securities, LLC
National Financial Services LLC
Total
33.79%
27.89%
17.52%
7.15%
3.63%
2.70%
Total Market Orders
39.49%
35.82%
Less than 0.01%
10.32%
4.11%
4.05%
Total Limit Orders
Total Other Orders
25.58%
17.82%
38.86%
4.27%
2.84%
1.44%
51.87%
39.51%
1.10%
0.22%
6.11%
0.14%
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Material Aspect of Relationship with Venue
• 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 $0.00016 per share for order flow executed in the fourth quarter 2014.
• 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 $0.0026 per
share for each order that removed liquidity from Direct Edge Exchange.
• 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.
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
97.32%
46.27%
48.50%
5.22%
Venues Receiving Significant Percentage of Total Non-Directed Orders :
Venue
1.
2.
3.
4.
5.
KCG Americas LLC
Citadel Securities LLC
Direct Edge Exchange
Goldman, Sachs & Co.
UBS Securities, LLC
Total
32.14%
28.95%
19.34%
6.58%
3.67%
Total Market Orders
38.82%
37.28%
Less than 0.01%
10.35%
4.21%
Total Limit Orders
Total Other Orders
23.03%
20.57%
39.72%
3.68%
2.82%
57.51%
32.87%
1.41%
0.25%
6.84%
Material Aspect of Relationship with Venue
• 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 $0.00016 per share for order flow executed in the fourth quarter 2014.
• 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 $0.0026 per
share for each order that removed liquidity from Direct Edge Exchange.
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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
96.63%
56.32%
38.97%
4.71%
Venues Receiving Significant Percentage of Total Non-Directed Orders :
Venue
1.
2.
3.
4.
5.
6.
KCG Americas LLC
Citadel Securities LLC
Direct Edge Exchange
Goldman, Sachs & Co.
UBS Securities, LLC
BATS Exchange, Inc.
Total
32.64%
31.35%
11.92%
9.12%
3.00%
2.77%
Total Market Orders
38.63%
38.12%
Less than 0.01%
11.33%
4.00%
0.00%
Total Limit Orders
Total Other Orders
22.45%
19.44%
30.48%
7.00%
1.52%
7.08%
45.32%
48.90%
0.93%
0.30%
3.32%
0.18%
Material Aspect of Relationship with Venue
• 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 $0.00016 per share for order flow executed in the fourth quarter 2014.
• 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 $0.0026 per
share for each order that removed liquidity from Direct Edge Exchange.
• FBS, through its affiliated broker-dealer NFS, received a credit on average of $0.0020 per share for each order routed by it to BATS
Exchange, Inc. that added liquidity to BATS Exchange, Inc. and which subsequently executed. FBS was charged fees on average of $0.0026
per share for each order that removed liquidity from BATS Exchange, Inc.
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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
99.27%
12.05%
86.25%
1.69%
Venues Receiving Significant Percentage of Total Non-Directed Orders :
Venue
1.
2.
3.
4.
5.
6.
7.
Total
Nasdaq Options Market
The Chicago Board Options Exchange
NYSE Arca Options
NASDAQ OMX PHLX
NYSE Amex Options
ISE Gemini Options Exchange
BATS Options Exchange, Inc.
Total Market Orders
32.28%
21.07%
20.53%
5.67%
5.40%
3.35%
2.34%
Total Limit Orders
0.67%
33.69%
0.44%
17.57%
15.31%
0.47%
0.61%
Total Other Orders
37.32%
18.82%
23.59%
3.82%
3.76%
3.60%
2.62%
0.66%
45.71%
7.58%
15.31%
18.55%
11.15%
0.08%
Material Aspect of Relationship with Venue
• Fidelity Brokerage Services LLC (FBS), through its affiliated broker dealer National Financial Services LLC (NFS), routes orders in exchange
listed options directly to exchanges or via one or more broker-dealer intermediaries, which in turn use smart order routing technology to seek
the best execution available in the market. The information in this report regarding the venues at which NFS’ non-directed orders in
exchange-listed options were executed is an average based on information supplied to NFS by the broker-dealer intermediaries in addition to
payments received by NFS directly from the options exchanges. Payments received averaged $.25 per contract.
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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