Order Routing Policy

SEC Rule 606 (formally known as Rule 11Ac1-6 under the Securities Exchange Act of 1934) requires all broker-dealers that route customer orders in equity and option securities to make publicly available quarterly reports that disclose the venues to which it routes "non-directed" orders in covered securities.  The vast majority of LSC's orders are routed to an exchange or ECN as selected by the customer.  However, when an order is routed to LSC's order desk, the decision where to send the customer's order is made by the firm.

It is LSC's policy to select the exchange, ECN or market maker, which is expected, because of the displayed quote, or otherwise, to provide the customer with the best possible execution.  Based on this policy, in the THIRD Quarter of 2008, LSC routed customer orders as specified in the below charts: