U.S. Securities and Exchange Commission ("SEC") Rule 11Ac1-6 requires all brokerage firms to publicly disclose their order routing practices. Disclosure is to describe routing of "non-directed orders," that is, orders that customers have not specifically asked to have sent to a particular venue for execution. For these non-directed orders, we select the venue on behalf of our customers. With respect to KCD Financial, Inc., relationships with trading venues, KCD Financial, Inc., directs all trades in over-the-counter (OTC), listed stock, and options to our clearing firm, Hilltop Securities, for execution.

KCD Financial, Inc. does not receive compensation for directing this order flow to Hilltop Securities. The designated market makers to whom orders are automatically routed are selected based on the consistently high quality of their executions in one or more market segments and their history of seeking price improvements. Hilltop Securities regularly reviews reports for quality of execution purposes. The most recent quarterly report is accessible here.