SEC Rule 606 Disclosure

Under SEC Rule 606, Kershner Securities is required to publish on the Internet and maintain a hard copy of quarterly statistics regarding its customer agency and order routing practices to provide the public with information on how the firm routes its customers’ non-directed orders in National Market System securities. Such quarterly reports are not required if the firm’s customer orders in NMS Securities average fewer than 500 per month during the preceding calendar quarter.

As such, Kershner Securities does not accept public customer accounts or hold itself out publicly as a broker dealer. Kershner Securities provides a DMA platform for an institutional customer that is a subsidiary of Kershner Trading Group (parent company of the broker dealer). All orders received through the platform are directed to a particular market center for execution by said institutional customer. Thus the requirement of Rule 606 is not applicable to Kershner Securities. This business practice is monitored monthly to ensure the any thresholds that would require Rule 606 reporting are not breached.