SEC-Required Rule 606 - Report on Routing of Customer Orders
for Quarter Ending June, 2010

1st Discount Brokerage, Inc. ("1DB") has prepared this report pursuant to a U.S. Securities and Exchange Commission rule requiring certain 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, 1DB has selected the execution venue on behalf of its customers.

The report is divided into four sections below: 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 the regional exchanges, and one for exchange-listed options. For each section, this report identifies the venues most often selected by 1DB, sets forth the percentage of various types of orders routed to the venues, and discusses the material aspects of 1DBs relationship with the venues.

A written copy of this report will be furnished upon request. In addition, information regarding the specific routing or any orders executed for your account for the previous six months will be furnished upon request. Please contact the representative handling your account.

1DB has an ownership stake in Lampost Capital and as such participates in the monthly net profits or losses for certain transactions: 1DB owns 2% of Lampost Capital. 1DB receives payment from Lampost Capital equal to 50% of the net profit resulting from orders directed to Lampost Capital by 1DB during the prior month. 1DB does not receive payment on a per share or per order basis.

Order Flow Payment Information: Penson Financial Services, Inc. receives payment for order flow on certain transactions in the form of monetary and/or non-monetary compensation or an inter-company transfer of funds. Payment for order flow is considered to be compensation to Penson Financial Services, Inc. 1DB, an introducing firm that clears its trades through Penson Financial Services, Inc., shares in such payments or directly receives payment for order flow for certain transactions, in addition to commission or markup/markdowns paid by its customers. The source and nature of any compensation received in connection with a specific transaction will be furnished upon written request from the customer. Further information also is available on the Penson Financial Services, Inc. website at www.penson.com.

Order Flow for Securities Listed on New York Stock Exchange

Summary Statistics
Description Percent
Non-directed orders as percentage of total customer orders 100.0%
Market orders as percentage of total non-directed orders 46.8%
Limit orders as percentage of total non-directed orders 43.6%
Other orders as percentage of total non-directed orders 9.5%

Venues receiving significant percentage of total non-directed orders
Venue Percent
NYSE ARCA 2.9%
Knight Capital Market,LLC 93.0%

Information Concerning significant Venues
Venue Order Type Percent
NYSE ARCA Limit 6.6%
Knight Capital Market,LLC Limit 90.5%
Knight Capital Market,LLC Market 96.0%
Knight Capital Market,LLC Other 89.6%


Order Flow for Securities Listed on NASDAQ Stock Market

Summary Statistics
Description Percent
Non-directed orders as percentage of total customer orders 100.0%
Market orders as percentage of total non-directed orders 48.4%
Limit orders as percentage of total non-directed orders 46.6%
Other orders as percentage of total non-directed orders 5.0%

Venues receiving significant percentage of total non-directed orders
Venue Percent
NYSE ARCA 4.8%
Knight Securities 92.2%

Information Concerning significant Venues
Venue Order Type Percent
NYSE ARCA Limit 9.4%
Knight Securities Limit 87.8%
Knight Securities Market 96.0%
Knight Securities Other 95.7%


Order Flow for Securities Listed on Amex or a Regional Exchange

Summary Statistics
Description Percent
Non-directed orders as percentage of total customer orders 100.0%
Market orders as percentage of total non-directed orders 44.9%
Limit orders as percentage of total non-directed orders 50.7%
Other orders as percentage of total non-directed orders 4.3%

Venues receiving significant percentage of total non-directed orders
NYSE ARCA 6.1%
Knight Capital Market,LLC 91.2%

Information Concerning significant Venues
Venue Order Type Percent
NYSE ARCA Limit 12.1%
Knight Capital Market,LLC Limit 84.3%
Knight Capital Market,LLC Market 98.0%
Knight Capital Market,LLC Other 100.0%


Order Flow for Exchange Listed Options

Summary Statistics
Description Percent
Non-directed orders as percentage of total customer orders 100.0%
Market orders as percentage of total non-directed orders 24.4%
Limit orders as percentage of total non-directed orders 75.6%

Venues receiving significant percentage of total non-directed orders
Venue Percent
ATD, a CITI Company 93.8%

Information Concerning significant Venues
Venue Order Type Percent
ATD, a CITI Company Limit 93.0%
ATD, a CITI Company Market 96.2%

For Quarter Ending June, 2010
For Quarter Ending March, 2010
For Quarter Ending December, 2009
For Quarter Ending September, 2009
For Quarter Ending June, 2009
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For Quarter Ending December, 2008
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For Quarter Ending June, 2008
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For Quarter Ending December, 2007
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For Quarter Ending June, 2007
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For Quarter Ending December, 2006
For Quarter Ending September, 2006
For Quarter Ending June, 2006
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For Quarter Ending December, 2005
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For Quarter Ending June, 2005
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For Quarter Ending December, 2004
For Quarter Ending September, 2004
For Quarter Ending June, 2004
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For Quarter Ending June, 2003
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