Pipeline Trading Systems LLC has prepared this report pursuant to a U.S. Securities and Exchange rule requiring all 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, Pipeline Trading Systems LLC has selected the execution venue on behalf of its customers.

The report is divided into three sections: one for securities listed on the New York Stock Exchange and reported as a Network A eligible security; one for securities listed on the NASDAQ Stock Exchange and one for securities listed on the American Stock Exchange or Regional Exchanges and reported as a Network B eligible security. For each section, this report identifies the venues most often selected by Pipeline Trading Systems LLC, sets forth the percentage of various types of orders routed to venues, and discusses the material aspects of Pipeline Trading Systems LLC relationship with the venues.

Information Concerning Significant Venues:
Venue Receiving Significant Percentage of Total Non-Directed Orders

Information Concerning Significant Venues:
Venue Receiving Significant Percentage of Total Non-Directed Orders

Information Concerning Significant Venues:
Venue Receiving Significant Percentage of Total Non-Directed Orders

Pipeline receives no Payment for Order Flow from any of the venues above.

Pipeline will, at your request, provide information regarding the venue(s) to which your non-directed orders in NMS stocks were routed for execution, as well as the time of execution of such orders, for a period up to six months prior to the subscribers’ request. Written requests should be sent to:

Compliance
Pipeline Trading Systems LLC
60 East 42nd Street, Suite 624
New York, NY 10165 

Pipeline Trading Systems LLC ("Pipeline" or "we") has prepared this report solely for informational purposes and in compliance with Rule 606 (formerly Rule 11Ac1-6 under the Securities Exchange Act of 1934) under Regulation NMS. The information provided in this report is not intended to, and does not, encompass all the factors to be considered in a best execution analysis and related order routing determinations. Other factors may be relevant to evaluating the quality of order execution and, as provided by the Securities and Exchange Commission, "statistical information does not create a reliable basis to address whether any particular broker-dealer failed to obtain the most favorable terms reasonably available under the circumstances for customer orders."

The information provided in this report may be impacted by market data system outages or errors, both internal and external, and is dependent upon the integrity and accuracy of data provided by outside sources. Although the information contained in this report is obtained or compiled from sources that we believe are reliable, Pipeline does not represent, warrant, or guarantee the accuracy, completeness and timeliness of this report or the validity of its use for any particular purpose. Pipeline, its affiliates, directors, officers or employees do not warranty, guarantee or make any representations, or assume any liability, including any direct, indirect, consequential, incidental or punitive damages that may arise from (1) the use of the information contained in this report; (2) the failure or interruption of any web site ("Web Site") through which this report is made available; or (3) any other cause relating to the access, inability to access, or use of the Web Site or this report, whether or not the circumstances giving rise to such cause may have been within the control of Pipeline or any other third party providing support to Pipeline. This report does not endorse or recommend any particular market venue.

Past Rule 606 Statements: 2nd Quarter 2008