Cetera Advisor Networks directs its New York Stock Exchange
(NYSE) equity order flow to its clearing broker, Pershing Division of
Lufkin & Jenrette Securities Corporation (Pershing), for routing and
Cetera Advisor Networks receives payment on a cents per share
basis for directing order flow to Pershing.
Pershing and its affiliate, Pershing Trading Company, L.P. (collectively
Pershing) receive compensation for directing a percentage of NYSE equity flow
to certain exchanges or specialists. Pershing also routes certain NYSE equity
flow to an affiliated specialist.
Compensation is generally in the form of a per share cash payment.
Additionally, certain exchanges reduce or eliminate execution fees on orders
directed to them in dually listed securities.
If an order for a NYSE listed security is not immediately executable on the
exchange to which it is routed, such order may be represented in the national
marketplace using the various means available for price discovery.
Pershing regularly reviews reports for quality of execution purposes.