Important Information About Personal Privacy And Information Sharing

On November 12, 1999, President Clinton signed the Gramm-Leach-Bliley Act (GLB) into law. Title V of the GLB sets forth privacy requirements for use of nonpublic personal financial information by banks, securities industry members, insurance companies, and other financial institutions. Consequently, the U.S. Securities & Exchange Commission (SEC) has issued Regulation S-P that requires, among other things, that notice be provided to consumers by financial institutions of the firm’s policies relating to private client information. At Trade Informatics LLC, we appreciate the trust our customers place in us and we recognize the vital importance of protecting the confidentiality of non-public personal information that we collect about them. Keeping this information secure is a top priority for us and so we share with you our Privacy Policy for our clients. Trade Informatics LLC collects nonpublic personal information about our customers from the following sources:

  • Information we receive from you on applications or other forms and correspondences;

  • Information about your transactions with us or others;

  • Information we may receive from consumer or credit reporting agencies; and

  • Information provided via our websites and electronic (including email) or other forms of communication.

The information is used to ensure accuracy in reporting and recordkeeping, and to carry out requested transactions. We limit access to your information to those of our employees and service providers who are involved in offering or administering the products and services that we offer. We do not disclose your information to anyone except as permitted by law. Trade Informatics LLC’s internal security policies restrict access to your non-public personal information to authorized employees who require such information to provide products or services to you. We maintain physical, electronic and procedural safeguards that are designed to comply with federal standards to guard this non-public personal information. It has always been Trade Informatics LLC’s policy not to disclose any non-public personal information about our clients to anyone except as permitted by law. We reserve the right to disclose nonpublic personal information to any person or entity, including, without limitation any governmental agency, regulatory authority or self-regulatory organization having jurisdiction over us if (i) we determine in our discretion that such disclosure is necessary or advisable pursuant to or in connection with any United States federal, state or local, or non-US law, rule, regulation, executive order or policy, including without limitation any anti-money laundering law or the USA Patriot Act of 2001, and (ii) such disclosure is not otherwise prohibited by law, rule, regulation, executive order or policy. If your account is closed or you become an inactive customer, we will continue to adhere to the privacy policies and practices as described in this notice. If you have any questions or comments regarding this notice, please feel free to contact us at (914) 220-1655.

Business Continuity Planning Disclosure


Trade Informatics LLC, and Trade Informatics, Inc. (“TI”) have developed a Business Continuity Plan on how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, we are providing you with this information on our business continuity plan.

Contacting Us – If after a significant business disruption you cannot contact us as you usually do at (914) 220-1616, you should call our alternative number (908) 507-8856, (732) 921-1056 or (312) 363-9533 or contact us via email at emoore@tradeinformatics.com, oemuleomo@tradeinformatics.com, bdonohue@tradeinformatics.com or TapSupport@tradeinformatics.com.

Our Business Continuity Plan – We plan to quickly recover and resume business operations after a significant business disruption and respond by safeguarding our employees and property, making a financial and operational assessment, protecting the firm’s database, technology stack, books and records, and allowing our customers to transact business. In short, our business continuity plan is designed to permit our firm to resume operations as quickly as possible, given the scope and severity of the significant business disruption.
Our business continuity plan addresses: data back up and data processing recovery; all mission critical systems; financial and operational assessments; alternative communications with customers, employees, and regulators; alternate physical location of employees; critical supplier, contractor, bank and counter-party impact; regulatory reporting; and assuring our customers prompt access to their funds, data, and other assets if we are unable to continue our business.

Acronis and Intuit back up our important financial records in a geographically separate area. While every emergency situation poses unique problems based on external factors, such as time of day and the severity of the disruption, we generally expect to be able to retrieve this information within 24 hours. General transactional and financial related queries and requests could be delayed during this period.

Amazon S3 backs up our clients’ trading related data used for post trade reporting in a geographically segregated area. While every emergency situation poses unique problems based on external factors, such as time of day and the severity of the disruption, we don’t expect this backup site to be impacted and we will restore data from this site within 72 hours. We also maintain certain onsite replications for localized disruptions allowing for quicker restoration.

Varying Disruptions – Significant business disruptions can vary in their scope, such as only our firm, a single building housing our firm, the business district where our firm is located, the city where we are located, or the whole region. This is also applicable to the location of our datacenters. Within each of these areas, the severity of the disruption can also vary from minimal to severe. In a disruption to only our firm or a building housing our firm, we will transfer our operations to a local site when needed and expect to recover and resume transactional business within 24 hours. In a disruption affecting our business district, city, or region, we will transfer our operations to a site outside of the affected area, and recover and resume business within 24 hours. TCA related services may take 72 to 120 hours to restore. In either situation, we plan to continue in business, transfer applicable operations to another office if necessary, and notify you through our web site www.tradeinformatics.com or our customer emergency number, (908) 507-8856, (732) 921-1056, or (312) 363-9533 how to contact us. If the significant business disruption is so severe that it prevents us from remaining in business, we will assure our customer’s prompt access to any funds, other assets and data.

For more information – If you have questions about our business continuity planning, you can contact us at (914) 220-1616 or compliance@tradeinformatics.com.

Extended Trading Hours Risk Disclosure


From time to time, Trade Informatics LLC may accept and execute trades outside of regular market hours in accordance with customer instructions and/or best execution obligations. Customers are advised as to the following characteristics of trading outside of regular market hours:

  1. Risk of Lower Liquidity. Liquidity refers to the ability of market participants to buy and sell securities. Generally, the more orders that are available in a market, the greater the liquidity. Liquidity is important because with greater liquidity it is easier for investors to buy or sell securities, and as a result, investors are more likely to pay or receive a competitive price for securities purchased or sold. There may be lower liquidity in extended hours trading as compared to regular market hours. As a result, your order may only be partially executed, or not at all.

  2. Risk of Higher Volatility. Volatility refers to the changes in price that securities undergo when trading. Generally, the higher the volatility of a security, the greater its price swings. There may be greater volatility in extended hours trading than in regular market hours. As a result, your order may only be partially executed, or not at all, or you may receive an inferior price in extended hours trading than you would during regular markets hours.

  3. Risk of Changing Prices. The prices of securities traded in extended hours trading may not reflect the prices either at the end of regular market hours, or upon the opening of the next morning. As a result, you may receive an inferior price in extended hours trading than you would during regular market hours.

  4. Risk of Unlinked Markets. Depending on the extended hours trading system or the time of day, the prices displayed on a particular extended hours system may not reflect the prices in other concurrently operating extended hours trading systems dealing in the same securities. Accordingly, you may receive an inferior price in one extended hours trading system than you would in another extended hours trading system.

  5. Risk of News Announcements. Normally, issuers make news announcements that may affect the price of their securities after regular market hours. Similarly, important financial information is frequently announced outside of regular market hours. In extended hours trading, these announcements may occur during trading, and if combined with lower liquidity and higher volatility, may cause an exaggerated and unsustainable effect on the price of a security.

  6. Risk of Wider Spreads. The spread refers to the difference in price between what you can buy a security for and what you can sell it for. Lower liquidity and higher volatility in extended hours trading may result in wider than normal spreads for a particular security.

  7. Risk of Lack of Calculation or Dissemination of Underlying Index Value or Intraday Indicative Value (“IIV”). For certain Derivative Securities Products, an updated underlying index value or IIV may not be calculated or publicly disseminated in extended trading hours. Since the underlying index value and IIV are not calculated or widely disseminated during the pre-market and post-market sessions an investor who is unable to calculate implied values for certain Derivative Securities Products in those sessions may be at a disadvantage to market professionals.

Order Handling & Best Execution Disclosures
Best Execution & Regulation NMS


Trade Informatics seeks to execute its customers’ orders in accordance with instructions and terms provided and/or at the most favorable terms reasonably available under prevailing market conditions. Under the Reg NMS, we have implemented procedures that are designed to prevent “tradethroughs” of NMS Stocks – the execution of trades during regular trading hours at prices inferior to protected quotations displayed by trading centers. Trade Informatics may utilize Intermarket Sweep Orders (“ISOs”). An ISO is a type of limit order that allows us to trade through a protected quote provided certain conditions are met. If an execution is requested outside the NBBO and in accordance with an order’s terms and conditions, we must route an ISO to execute against the full displayed size of any protected quotation with a price that is superior to the proposed execution price. The ISO designation allows the receiving exchange or ADF participant to immediately execute the order without regard to better-priced quotes displayed in other markets. Unless another exception under the Order Protection Rule applies, it will be necessary for us to route an ISO, or multiple ISOs, when executing your order outside of the NBBO in accordance with its terms, conditions and instructions. In such cases, we will route ISOs as agent on your behalf and attribute any better prices received from such executions to your order. Once responses to the ISOs are received, we will execute the remaining balance of your order at the agreed upon trade execution price (a “sweep and print” approach). You may “opt-out” of receiving ISO fills however, by informing us on a trade-by-trade basis that you do not wish to receive the benefit of better prices obtained from the ISOs; in which case we will execute your entire trade at the agreed upon trade execution price and size. In this case, any required ISOs will be routed on a principal basis and retained by us or allocated to other customer orders.

Payment for Order flow


Pursuant to federal securities regulations, we are required to disclose at the time your account is opened, and annually thereafter, our payment for order flow practices. We route your equity orders to market centers for execution. These market centers may include dealers who make markets in these securities. We may receive compensation for routing equity orders to market centers. In exchange for routing your equity orders to certain market centers, we may receive monetary rebates per executed share for equity orders that add liquidity to its book and/or rebates for aggregate exchange fees. The rebates are considered payment for order flow even though it may not necessarily offset our aggregate payments for removing liquidity. The amount of the rebate depends on the agreement reached with each market center and will be furnished to you upon written request. We also may receive payment for routing your options orders to designated broker/dealers or market centers for execution. Compensation is in the form of a per contract cash payment. The source and amount of any compensation received in connection with your options transaction and any additional information concerning the options order flow payments will be furnished to you upon written request. Order routing decisions are based on a number of factors including the size of the order, the opportunity for price improvement and the quality of order executions. We regularly review routing decisions, market centers and test trade executions to ensure that your orders meet our duty of best execution. In the absence of specific instructions from customers, we generally direct orders for certain securities to market centers regardless of whether a particular order qualifies for such payments as described above. However, orders normally directed to a specialized market maker or alternative market center may be rerouted because of market conditions in accordance with Reg NMS requirements. Extraordinary market activity (heavy volume, fast market, market downturn) or equipment failure may also be a factor in the determination of order routing.

Disclosure of Order Routing Information


Trade Informatics will, at your request, provide information with respect to the venue(s) to which your directed or non-directed orders were routed for execution, as well as the time of execution of such orders. We also prepare quarterly reports on its routing of non-directed orders in NMS Stock and listed options, a link to which is available on our website. We will provide you a written copy of the quarterly report at your request.  View our Rule 606 Routing Data.

“Held” or “Not Held’ Orders


When you place an order with Trade Informatics for execution, you may specify that we handle your order on either a “not held” Of a “held” basis. A “not held” order means you are giving us time and price discretion in seeking to obtain the best execution of your order. A “held” order means we do not have discretion in handling your order. If you give us a “held” market order or marketable limit order, we must execute the order at the then prevailing market price, if you give us a “held” limit order, any execution has to occur at the limit price or better, if available. “Not held” orders give us the flexibility and discretion to work your order to seek to obtain the best execution reasonably available. We believe that by exercising appropriate judgment and discretion (j.e. on a “not held” basis) with respect to your order, it generally can achieve the best execution possible under the facts and circumstances. However, a “not held” order does not have price protection. All orders handled by Trade Informatics are considered “not held” unless otherwise explicitly communicated by you.

Average Price Reports


Trade Informatics may execute your order in more than one transaction over a period of time, or, in certain markets, aggregate your order with other orders. In such instances, we will provide you with a report noting that the aggregate amount of securities purchased or sold in your account received a single “average” price. We will provide you with information about individual executions at your request.

“Net” Basis Orders


FINRA Rule 2441 allows Trade Informatics to execute orders on a “net” basis for its institutional clients provided we adhere to our obligations of best execution. You may provide us with your “negative consent” to opt out of net trading or provide such instruction on an order by order basis. A “net” transaction means a principal transaction in which we, after having received an order to buy (sell) an equity security, purchases (sells) the equity security at one price (from (to) another broker-dealer, market center or another customer) and then sells to (buys from) the customer at a different price. In such case, we do not charge you a commission, but rather collect the price difference between its principal transaction to buy (Sell) the equity security and Its subsequent sale (purchase) of the equity securities to (from) you as compensation for executing your transaction. In general, net trades must comply with the Reg. NMS Order Protection Rule (discussed above). The net price reported to the Consolidated Tape is the price of the trade for all purposes under Order Protection Rule, such as determining whether a trade-through occurred and routing the necessary orders to execute against protected quotations to comply with the ISO exception. If Trade Informatics does not receive an opt out notice from you, we will conclude that you have granted us permission to execute your orders on a net basis when appropriate. Please contact your sales representative if you do not want Trade Informatics to execute your orders on a net basis.

Selling Securities “Long”


When you enter an order to sell a security “long”, you are representing to us that you own the security and will deliver such security in good form by settlement date. Failure to deliver the securities by settlement date may result in our closing the transaction immediately or thereafter by purchasing like securities for your account and risk, without prior notice.

Fail to Deliver Securities Sold for Settlement


On October 14, 2008, the SEC adopted Rule 204T of Regulation SHO as an interim final temporary rule (“Interim Rule”). This Interim Rule extends, until July 31. 2009, the requirements of the SEC’s September 17, 2008 Emergency Order (the “Order”) requiring the delivery of equities sold long or short on settlement date. In compliance with the terms of the Interim Rule, any fail to deliver position must be closed out by the opening of trading on T+4. While we and our clearing firm will use its best efforts to minimize the impact of any fails, we may be required to purchase shares from another source to cover your position should you not deliver the necessary shares by settlement. Should the fail continue to exist past the opening on T+4, the Interim Rule requires that shares be pre-borrowed prior to us accepting any short sales in that security from any client until the fail to deliver position is closed out. In such case, clients will be required to obtain a pre-borrow from our clearing firm’s Stock Loan Department prior to entering a short sell order with us.

Capacities in Which We Act


We may act as principal or agent in executing or effecting transactions with or for you. When we trade securities with or for you, we may be engaging in similar trading with, or for other customers. We may also trade ahead of or alongside a customer order at prices that would satisfy such order by executing the same trade or trading strategy as principal at approximately the same time as a customer or when covering a principal position. In accordance with FINRA Rule 5320, you may opt in to provisions that would disallow us from trading ahead of or alongside with your orders. From time to time, employees may share with you trading information, ideas or strategies that relate to securities or financial instruments in an unattributed/anonymous manner related to order flow and market information to which we are privy. Trade Informatics does not act as an advisor with respect to you or any of your customers or accounts. Ideas or strategies should not be treated as research or a solicitation to buy or sell securities. We do not produce or publish research nor do we make recommendations of any particular securities or investment strategies on which you should base any investment decision. Trade Informatics’ policy is to maintain the confidentiality of client order and transaction information. Be assured that we have strict policies and procedures in place on confidentiality of client information, as well as, sophisticated and secure trading and operational technology to provide superior protection of our clients’ trading activity. All communication regarding the provisions outlined in this disclosure may be made to Allan Goldstein at agoldstein@sjlevinson.com or (914) 220-1655.

FINRA Rule 5320 Disclosure


FINRA Rule 5320 generally prohibits a broker-dealer that accepts and holds an order in an equity security from its customer or a customer of another broker-dealer without immediately executing the order from trading that security on the same side of the market for its own account at a price that would satisfy the customer order, unless it immediately thereafter executes the customer order up to the size and at the same or better price at which it traded for its own account. When you place a “not held” order, which is generally a discretionary order, with us we may trade in the security for our own account prior to completion of your order. With respect to the orders of an “institutional account”, as defined in NASD Rule 3110, or for orders of 10,000 shares or more with a value of at least $100,000, Rule 5320 permits a broker-dealer to trade an equity security on the same side of the market for its own account at a price that would satisfy such customer order provided that certain notice is provided to the customer and the customer is provided an opportunity to “opt-in” to the Rule 5320 protections with respect to all or any particular order. Institutional accounts and persons placing orders for 10,000 shares or more not otherwise subject to the protections afforded by Rule 5320 may “opt-in” to the Rule 5320 protections on an order by order basis with the Trade Informatics representative taking your order or for all your orders by informing compliance at (914) 220-1655.

FINRA and SIPC Information Notice
SIPC Notice


Trade Informatics is a member of Securities Investor Protection Corporation (SIPC). You may obtain information regarding (SIPC) and obtain a brochure entitled How SIPC Protects You by contacting SIPC at (202) 371-8300 or www.sipc.org.

Investor Education & Protection


Please be advised that FINRA offers an investor brochure describing its Public Disclosure Program (BrokerCheck®) which can be obtained via the FINRA website (www.finra.org) or through the FINRA Public Disclosure Program Hotline Number at(800) 289-9999.

Customer Identification Program (CIP)


To help the government fight the funding of terrorism and money laundering activities, Federal law, including the USA Patriot Act, requires all financial institutions to obtain, verify, and record information that identifies each person or company who opens an account with Trade Informatics. When you open account, we will ask for the name of your entity, address, tax identification number and other information and/or documentation that will allow us to identify you. We may also ask to see your articles of incorporation, partnership agreement or other identifying documents.