Report on Routing Customers Orders

For Quarter Ending March 31, 2003

Lemley Yarling & Co. (LY&Co.) has prepared this report in accordance with Exchange Act Rule 11Ac1-6 which requires broker-dealers to make publicly available certain order routing information quarterly. This 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).

LY&Co. transmits non-directed orders to its clearing firm, ABN Amro, for execution. Non-directed customer orders are executed as described below.

The report is divided into four sections:

I. Securities listed on the New York Stock Exchange ("NYSE")

II. Securities listed on the American Stock Exchange ("AMEX") or any other national securities exchange

III. Securities qualified for inclusion in the Nasdaq Stock Market, Inc. ("NASDAQ")

IV. Covered securities that are options contracts

Each section identifies the venues receiving LY&Co.ís non-directed orders for execution, and the percentage of types of orders routed to each venue.

Material aspects of LY&Co.ís relationships with execution venues

LY&Co. does not receive payments in exchange for sending orders to any venue or broker-dealer. As noted above, LY&Co. transmits orders to ABN Amro for execution. ABN Amro selects execution venues, subject to LY&Co.ís review. LY&Co. understands that ABN Amro may receive payments from venues in exchange for sending orders for execution. However, ABN Amro does not pass on to LY&Co. any such payments received by ABN Amro.

I. Securities listed on the NYSE

Non-directed orders as percentage of total customer orders 100%

  1. Market Orders as % of total non-directed orders 0%
  2. Limit Orders as % of total non-directed orders 100%
  3. Other Orders as % of total non-directed orders 0%

Venues Receiving Non-Directed Orders:

 

Venue

% of Non-Directed

Order Flow

Order Type

 

 

 

Market

Orders

Limit

Orders

Other

Orders

New York Stock Exchange

98.7% (235)

0%

100%

0%

Midwest Stock Exchange

1.3% (3)

0%

100%

0%

 

II. Securities Listed on the AMEX or any other national securities exchange

Non-directed orders as percentage of total customer orders 100%

  1. Market Orders as % of total non-directed orders 0%
  2. Limit Orders as % of total non-directed orders 100%
  3. Other Orders as % of total non-directed orders 0%

Venues Receiving Non-Directed Orders:

 

Venue

% of Non-Directed

Order Flow

Order Type

 

 

 

Market

Orders

Limit

Orders

Other

Orders

American Stock Exchange

100% (61)

0%

100%

0%

 

 

III. Securities Listed on the NASDAQ Stock Market

Non-directed orders as percentage of total customer orders 100%

  1. Market Orders as % of total non-directed orders 0%
  2. Limit Orders as % of total non-directed orders 100%
  3. Other Orders as % of total non-directed orders 0%

Venues Receiving Non-Directed Orders:

 

Venue

% of Non-Directed

Order Flow

Order Type

 

 

 

Market

Orders

Limit

Orders

Other

Orders

ARCA

Instinet

11.7% †††( 31)

88.3%††† (235)

0%

0%

100%

100%

0%

0%

 

IV. Covered securities that are options contracts

None