SEC-Required Report on Routing of Customer Orders

For Quarter Ending Wed Jun 30 23:59:59 2010

Pennaluna & Company has prepared this report pursuant to a U.S. Securities and Exchange Commission rule requiring most 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, Pennaluna 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; one for securities listed on The Nasdaq Stock Market; one for securities listed on the American Stock Exchange or regional exchanges. A fourth section for exchange-listed options does not appear, because Pennaluna & Company does not trade options.

For each section, this report identifies the venues most often selected by Pennaluna & Company and sets forth the percentage of various types of orders routed to the venues. With respect to all orders, as has been common practice in the securities industry, Pennaluna & Company or related parties may receive remuneration for the equity order flow routed for customer orders. Such orders are executed at prices equal to or better than the displayed national best bid/offer price. Not all orders are so directed nor are rebates available in many instances and where such arrangements exist they are subject to a number of conditions. When received, such remuneration may be used to help defray the firm’s aggregate cost of executing trades or other business purposes.