Investments Disclosure

Note: Broker-dealers are required to disclose any material arrangements with the venues listed in each section below, including, but not limited to, any internalization or payment for order flow arrangements.

 

First Tennessee Brokerage, Inc.
530 Oak Court Drive
Suite 200
Memphis, TN 38117

SEC Rule 606 Quarterly Report for the Quarter Ending March 31, 2012

Securities Listed on New York Stock Exchange

Summary Statistics

  • Non-directed orders as percentage of total customer orders - 100.00%
  • Market orders as percentage of total non-directed orders - 65.63%
  • Limit orders as percentage of total non-directed orders - 32.96%
  • Other orders as percentage of total non-directed orders - 1.41%

Venues Receiving Significant Percentage of Total Non-Directed Orders

  1. Knight Capital Markets, L.L.C. - 29.91%
  2. Citadel Securities LLC - 15.71%
  3. UBS Securities, LLC - 12.70%
  4. National Financial Services LLC - 10.76%
  5. Direct Edge Exchange - 6.91%
  6. BATS Exchange, Inc. - 5.46%
  7. NYSE ARCA - 5.14%
  8. Two Sigma Securities, LLC - 4.32%
  9. Goldman, Sachs & Co. - 2.62%
  10. Citigroup Global Markets, Inc. - 2.05%

Information Concerning Significant Venues:

  1. Knight Capital Markets, LLC

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 33.17%
    • Limit orders as percentage of total limit orders - 22.61%
    • Other orders as percentage of total other orders - 48.61%

  2. Citadel Securities LLC

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 19.91%
    • Limit orders as percentage of total limit orders - 6.88%
    • Other orders as percentage of total other orders - 26.39%

  3. UBS Securities, LLC

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 16.90%
    • Limit orders as percentage of total limit orders - 3.80%
    • Other orders as percentage of total other orders - 25.00%

  4. National Financial Services LLC

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 11.65%
    • Limit orders as percentage of total limit orders - 9.44%
    • Other orders as percentage of total other orders - 0.00%

  5. Direct Edge Exchange

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 0.00%
    • Limit orders as percentage of total limit orders - 20.95%
    • Other orders as percentage of total other orders - 0.00%

  6. BATS Exchange, Inc.

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 0.00%
    • Limit orders as percentage of total limit orders - 16.56%
    • Other orders as percentage of total other orders - 0.00%

  7. NYSE ARCA

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 0.00%
    • Limit orders as percentage of total limit orders - 15.61%
    • Other orders as percentage of total other orders - 0.00%

  8. Two Sigma Securities, LLC

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 6.20%
    • Limit orders as percentage of total limit orders - 0.77%
    • Other orders as percentage of total other orders - 0.00%

  9. Goldman, Sachs & Co.

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 3.70%
    • Limit orders as percentage of total limit orders - 0.59%
    • Other orders as percentage of total other orders - 0.00%

  10. Citigroup Global Markets, Inc.

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 2.89%
    • Limit orders as percentage of total limit orders - 0.47%
    • Other orders as percentage of total other orders - 0.00%

Securities Listed on The Nasdaq Stock Market

Summary Statistics

  • Non-directed orders as percentage of total customer orders - 100.00%
  • Market orders as percentage of total non-directed orders - 62.13%
  • Limit orders as percentage of total non-directed orders - 36.66%
  • Other orders as percentage of total non-directed orders - 1.21%

Venues Receiving Significant Percentage of Total Non-Directed Orders:

  1. UBS Securities, LLC - 31.51%
  2. Citadel Securities LLC - 23.04%
  3. Knight Equity Markets, L.P. - 15.53%
  4. National Financial Services LLC - 7.70%
  5. Two Sigma Securities, LLC - 4.01%
  6. Direct Edge Exchange - 3.76%
  7. BATS Exchange, Inc. - 3.69%
  8. NYSE ARCA - 2.48%
  9. Goldman, Sachs & Co. - 2.36%
  10. Citigroup Global Markets, Inc. - 1.78%

Information Concerning Significant Venues:

  1. UBS Securities, LLC

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 25.51%
    • Limit orders as percentage of total limit orders - 41.49%
    • Other orders as percentage of total other orders - 36.84%

  2. Citadel Securities LLC

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 25.92%
    • Limit orders as percentage of total limit orders - 18.92%
    • Other orders as percentage of total other orders - 0.00%

  3. Knight Equity Markets, L.P.

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 18.95%
    • Limit orders as percentage of total limit orders - 8.16%
    • Other orders as percentage of total other orders - 63.16%

  4. National Financial Services, LLC

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 10.76%
    • Limit orders as percentage of total limit orders - 2.78%
    • Other orders as percentage of total other orders - 0.00%

  5. Two Sigma Securities, LLC

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 6.35%
    • Limit orders as percentage of total limit orders - 0.17%
    • Other orders as percentage of total other orders - 0.00%

  6. Direct Edge Exchange

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 0.00%
    • Limit orders as percentage of total limit orders - 10.24%
    • Other orders as percentage of total other orders - 0.00%

  7. BATS Exchange, Inc.

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 0.00%
    • Limit orders as percentage of total limit orders - 10.07%
    • Other orders as percentage of total other orders - 0.00%

  8. NYSE ARCA

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 0.00%
    • Limit orders as percentage of total limit orders - 6.77%
    • Other orders as percentage of total other orders - 0.00%

  9. Goldman, Sachs & Co.

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 3.69%
    • Limit orders as percentage of total limit orders - 0.17%
    • Other orders as percentage of total other orders - 0.00%

  10. Citigroup Global Markets, Inc.

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 2.66%
    • Limit orders as percentage of total limit orders - 0.35%
    • Other orders as percentage of total other orders - 0.00%

Securities Listed on NYSE Amex or Regional Exchanges

Summary Statistics:

  • Non-directed orders as percentage of total customer orders - 100.00%
  • Market orders as percentage of total non-directed orders - 76.71%
  • Limit orders as percentage of total non-directed orders - 21.65%
  • Other orders as percentage of total non-directed orders - 1.63%

Venues Receiving Significant Percentage of Total Non-Directed Orders:

  1. Knight Capital Markets, LLC - 26.76%
  2. UBS Securities, LLC - 23.08%
  3. Citadel Securities LLC - 21.04%
  4. National Financial Services LLC - 6.03%
  5. Two Sigma Securities, LLC - 5.41%
  6. Direct Edge Exchange - 4.60%
  7. BATS Exchange, Inc. - 3.98%
  8. NYSE ARCA - 3.78%
  9. Goldman, Sachs & Co. - 1.94%
  10. Citigroup Global Markets, Inc. - 1.74%

Information Concerning Significant Venues

  1. Knight Capital Markets, LLC

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 29.43%
    • Limit orders as percentage of total limit orders - 15.09%
    • Other orders as percentage of total other orders - 56.25%

  2. UBS Securities, LLC

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 23.30%
    • Limit orders as percentage of total limit orders - 21.23%
    • Other orders as percentage of total other orders - 37.50%

  3. Citadel Securities LLC

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 25.97%
    • Limit orders as percentage of total limit orders - 4.72%
    • Other orders as percentage of total other orders - 6.25%

  4. National Financial Services LLC

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 7.72%
    • Limit orders as percentage of total limit orders - 0.47%
    • Other orders as percentage of total other orders - 0.00%

  5. Two Sigma Securities, LLC

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 6.92%
    • Limit orders as percentage of total limit orders - 0.47%
    • Other orders as percentage of total other orders - 0.00%

  6. Direct Edge Exchange

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 0.00%
    • Limit orders as percentage of total limit orders - 21.23%
    • Other orders as percentage of total other orders - 0.00%

  7. BATS Exchange, Inc.

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 0.00%
    • Limit orders as percentage of total limit orders - 18.40%
    • Other orders as percentage of total other orders - 0.00%

  8. NYSE ARCA

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 0.00%
    • Limit orders as percentage of total limit orders - 17.45%
    • Other orders as percentage of total other orders - 0.00%

  9. Goldman, Sachs & Co.

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 2.40%
    • Limit orders as percentage of total limit orders - 0.47%
    • Other orders as percentage of total other orders - 0.00%

  10. Citigroup Global Markets, Inc.

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 2.26%
    • Limit orders as percentage of total limit orders - 0.00%
    • Other orders as percentage of total other orders - 0.00%

Exchange - Listed Options

Summary Statistics

  • Non-directed orders as percentage of total customer orders - 100.00%
  • Market orders as percentage of total non-directed orders - 56.03%
  • Limit orders as percentage of total non-directed orders - 43.89%
  • Other orders as percentage of total non-directed orders - 0.08%

Venues Receiving Significant Percentage of Total Non-Directed Orders

  1. The Chicago Board Options Exchange - 57.27%
  2. NYSE AMEX Options - 15.13%
  3. Nasdaq Execution Services, LLC - 7.48%
  4. The Boston Option Exchange - 5.99%
  5. NASDAQ OMX PHLX - 5.74%
  6. NYSE ARCA Options - 3.41%
  7. BATS Options Exchange, Inc. - 2.91%
  8. The International Securities Exchange - 2.08%

Information Concerning Significant Venues

  1. The Chicago Board Options Exchange

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 79.23%
    • Limit orders as percentage of total limit orders - 29.36%
    • Other orders as percentage of total other orders - 0.00%

  2. NYSE AMEX Options

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 7.57%
    • Limit orders as percentage of total limit orders - 24.81%
    • Other orders as percentage of total other orders - 0.00%

  3. Nasdaq Execution Services, LLC

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 0.45%
    • Limit orders as percentage of total limit orders - 16.48%
    • Other orders as percentage of total other orders - 0.00%

  4. The Boston Option Exchange

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 8.01%
    • Limit orders as percentage of total limit orders - 3.41%
    • Other orders as percentage of total other orders - 0.00%

  5. NASDAQ OMX PHLX

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 2.52%
    • Limit orders as percentage of total limit orders - 9.66%
    • Other orders as percentage of total other orders - 100.00%

  6. NYSE ARCA Options

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 0.74%
    • Limit orders as percentage of total limit orders - 6.82%
    • Other orders as percentage of total other orders - 0.00%

  7. BATS Options Exchange, Inc.

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 0.30%
    • Limit orders as percentage of total limit orders - 6.25%
    • Other orders as percentage of total other orders - 0.00%

  8. The International Securities Exchange

    Types of Orders Routed to Venue:

    • Market orders as percentage of total market orders - 1.19%
    • Limit orders as percentage of total limit orders - 3.22%
    • Other orders as percentage of total other orders - 0.00%

The following information is a discussion concerning First Tennessee Brokerage, Inc.'s (FTBR) business relationship with each of the brokers identified above:

National Financial Services, LLC (NFS). NFS provides fully disclosed clearing services to FTBR. Pursuant to this agreement, NFS provides clearing, custody, execution and other broker related services to FTBR and its customers. FTBR pays NFS a fee for performing these services. FTBR may receive compensation from FTBR or its affiliates in connection with purchases by FTBR customers of shares of certain investment companies advised by affiliates of NFS.

MPAC Capital Partners LP (MPAC) provides order execution services to FTBR for orders directed to it by FTBR. FTBR receives cash compensation from MPAC for customer orders transmitted to MPAC for execution.

Statement on Business Continuity

  • INVESTMENTS & PLANNING PRODUCTS

Federal Deposit Insurance Corporation Banking products and services are provided by First Tennessee Bank National Association. Member FDIC. Logo_Equal_Housing_LG Equal Housing Lender.