Waddell & Reed, Inc. is a wholly-owned subsidiary of LPL Holdings, Inc. and an indirect subsidiary of LPL Financial Holdings, Inc., a publicly-held company (NASD: LPL).
SEC-Required Report on Routing of Customer Orders
Waddell & Reed, Inc. ("W&R") introduces transactions on a fully disclosed basis to our clearing firm, Pershing LLC ("Pershing") . In November 2000, the U.S. Securities and Exchange Commission ("SEC") adopted new rules aimed at improving the quality and availability of disclosure related to order execution and routing practices. Pershing has prepared reports pursuant to SEC Rule 606 that requires all brokerage firms to make publicly available quarterly reports on their order routing practices. The 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, our clearing firm has selected the execution venue on behalf of its customers.
The report is divided into four sections: one for securities listed on the New York Stock Exchange, one for securities listed on The Nasdaq Stock Market, one for securities listed on the American Stock Exchange or regional exchanges, and one for exchange-listed options. For each section, this report identifies the venues most often selected by the clearing firm, sets forth the percentage of various types of orders routed to the venues, and discusses the material aspects of the respective clearing firm's relationship with the venues. W&R directs its equity order flow to its clearing firm, Pershing, for routing and execution based upon where the customer's account is held. W&R does not receive compensation for directing order flow to Pershing.
Click here if your account is held at Pershing (enter WADDELL & REED, INC when prompted for the broker-dealer's full name).