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Disclosure of Order Routing Information
In accordance with Securities and Exchange Commission ("SEC") requirements, Nomura Securities International, Inc. ("NSI"), is publishing statistical information about its routing of certain customers' orders in NMS Securities and Listed Options. SEC rules require all registered broker-dealers that route orders in certain equity and option securities to make publicly available quarterly reports that present a general overview of a firm's non-directed order routing practices. Please note that based on the SEC's requirements, these statistics capture only a portion of NSI's order flow.
These statistics are intended to provide only an overview of NSI's order routing practices. Accordingly, the statistics do not create a reliable basis on which to assess whether NSI or any other trading venue has satisfied its duty of best execution. NSI has made every attempt to provide these statistics in compliance with SEC Rules, however, errors may occur or certain system outages may cause the data to be incorrect.
For further information on SEC Rule 606, you may visit the SEC website.
NSI routes customer equity orders to national securities exchanges, alternative trading systems, which may include electronic communications networks, and other market centers. In exchange for routing equity orders to certain market centers, NSI may receive monetary rebates per executed share for equity orders that add liquidity to its book and/or rebates for aggregate exchange fees. The rebates are considered payment for order flow even though it may not necessarily offset NSI's aggregate payments for removing liquidity. In this regard, in any given month, the 'credits' received by NSI from a given market center may exceed the 'debits' charged to NSI for such period. Therefore, such excess credits paid to NSI may constitute, according to regulatory interpretation, payment for order flow.
NSI routes customer option orders to the various listed option exchanges. NSI does not accept direct payment for order flow from any of these exchanges. However, certain of the option exchanges have instituted a Maker/Taker model or a Taker/Maker model (standard charge and rebate model offered by some options exchanges), and therefore, in any given month the 'credits' received by NSI from a given market center may exceed the 'debits' charged to NSI for such period. Therefore, such excess credits paid to NSI, according to regulatory interpretation, may constitute payment for order flow.
NSI does not hold any investments in any of the US equity or option exchanges. However, since certain of these venues are publicly held institutions whose securities trades on a national securities exchange, NSI may, through the normal course of business purchase and sell shares in these venues. With respect to routing venues, Instinet, Inc., which NSI may use as a routing venue from time to time, is an affiliate of NSI.
| For Quarter Ended 3/31/2013 | NonDirected Orders | NonDirected Market Orders | NonDirected Limit Orders | NonDirected Other Orders* |
|---|---|---|---|---|
| Orders Routed To: | ||||
| EDGX (Direct Edge X) | 36.70% | 21.50% | 7.70% | 36.70% |
| ARCA (ARCA) | 28.60% | 20% | 15.40% | 28.60% |
| NSDQ (Nasdaq) | 7.10% | 1.50% | 7.70% | 7.10% |
| INCA (Instinet GPT Desk) | 6.90% | 0% | 23.10% | 6.90% |
| BATS (BATS) | 6.60% | 0% | 7.70% | 6.60% |
| NYSE (NYSE) | 6.20% | 0% | 0% | 6.20% |
| Total NonDirected Orders | 15.10% | 0% | 0% | 100% |
NYSE
The chart above shows the percentages of orders placed for securities trading on the New York Stock Exchange (NYSE).
| For Quarter Ended 3/31/2013 | NonDirected Orders | NonDirected Market Order | NonDirected Limit Order | NonDirected Other Order* |
|---|---|---|---|---|
| Orders Routed To: | ||||
| NSDQ (Nasdaq) | 56.60% | 21.10% | 14.30% | 56.60% |
| ARCA (ARCA) | 15.10% | 15.80% | 14.30% | 15.10% |
| EDGX (Direct Edge X) | 9.60% | 57.90% | 0% | 9.60% |
| XBOS (Boston Stock Exchange) | 6.10% | 0% | 0% | 6.10% |
| Nomura Securities International | 2.40% | 0% | 0% | 2.40% |
| Total NonDirected Orders | 6.50% | 0% | 0% | 100% |
NASDAQ
The chart above shows the percentages of orders placed for securities trading on the NASDAQ Stock Market (NASDAQ).
| For Quarter Ended 3/31/2013 | Total NonDirected Order | NonDirected Market Order | NonDirected Limit Order | NonDirected Other Order* |
|---|---|---|---|---|
| Orders Routed To: | ||||
| ARCA (ARCA) | 37% | 25% | 0% | 37% |
| NSDQ (Nasdaq) | 28.20% | 62.50% | 0% | 28.20% |
| EDGX (Direct Edge X) | 16.90% | 12.50% | 0% | 16.90% |
| INCA (Instinet GPT Desk) | 8.90% | 0% | 0% | 8.90% |
| AUTO (ATD Citi) | 2.30% | 0% | 0% | 2.30% |
| Total NonDirected Orders | 7.10% | 0% | 0% | 100% |
NYSE AMEX / Regional Stock Exchanges
The chart above shows the percentages of orders placed for securities trading on the NYSE AMEX Stock Exchange (AMEX) and regional exchanges.
| For Quarter Ended 3/31/2013 | Total NonDirected Order | NonDirected Market Order | NonDirected Limit Order | NonDirected Other Order* |
|---|---|---|---|---|
| Orders Routed To: | ||||
| Chicago Boards Options Exchange | 69.40% | 70.80% | 67.60% | 0% |
| International Securities Exchange | 8.40% | 9.10% | 7.50% | 0% |
| NASDAQ OMX PHLX | 6.40% | 7% | 5.70% | 0% |
| NSDQ (Nasdaq) | 4.90% | 4.80% | 5.10% | 0% |
| Bats Option Exchange | 3.90% | 2.60% | 5.70% | 0% |
| Total NonDirected Orders | 100% | 56.10% | 43.90% | 0% |
Exchange Listed Options
The chart above shows the percentages of orders placed for Exchange Listed Options.
SEC (Rule 605) Order Routing Disclosures (Rule 606) Terms Of Use
Nomura Securities International, Inc., is a member of SIPC
