Académique Documents
Professionnel Documents
Culture Documents
Nutmeg Securities Ltd has 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 800-288-5513, you should call our alternative number 203-255-3838 or go to our web site at
www.nutmegsecurities.com for information. If you cannot access us through either of those means, you should
contact our clearing firm, Pershing, www.pershing.com/about.htm or call 201-413-3635 for recorded
instructions. If you cannot access the instructions from the website or the previously noted telephone number,
Pershing may be contacted at 213-624-6100 extension 500 as an alternate telephone number for recorded
instructions.
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 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 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 and securities if we are unable to continue
our business.
Our clearing firm, Pershing, backs up our important 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 have been advised by our clearing firm that its objective is to restore its own operations and be
able to complete existing transactions and accept new transactions and payments within four hours. Your orders
and requests for funds and securities could be delayed during this period. This recovery objective may be
negatively affected by the unavailability of external resources and circumstances beyond our control. Also,
instructions to our clearing firm, Pershing, must be in writing and transmitted via facsimile (201)-413-5368 or
postal service as follows:
Pershing LLC
P.O. Box 2065
Jersey City, New Jersey 07303-2065
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. 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 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 expect to recover
and resume business within 48 hours. In either situation, we plan to continue in business, transfer operations to
our clearing firm if necessary, and notify you through our web site www.nutmegsecurties.com or our customer
number, 800-288-5513. 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 their funds and securities by directing you to contact
our clearing firm directly.
For more information – If you have questions about our business continuity planning, you can contact us at:
Mathew Rochlin
Office: 203-255-3838
Home: 203-256-1437
VT Home: 802-325-2501
Cell: 203-7639326
EMAIL: mkr@nutmegsec.com alternate finopco@yahoo.com
Marissa Santangelo
Office: 203-255-3838
Home: 203-856-5702
Cell: 203-856-5702
EMAIL: Marissa@nutmegsec.com alternate MSanta7710@aol.com
These names will be updated in the event of a material change, and our Executive Representative
will review them within 17 business days of the end of each quarter.
III.Business Description
Our firm conducts business in equity, fixed income, and derivative securities. Our firm is an
introducing firm and does not perform any type of clearing function for itself or others. Furthermore,
we do not hold customer funds or securities. We accept and enter orders. All transactions are sent to
our clearing firms, which executes our orders, compares them, allocates them, clears and settles them.
Our clearing firm also maintains our customers’ accounts, can grant customers access to them, and
delivers funds and securities. Our firm services retail and institutional customers.
IV.Office Locations
Office Locations
Our Location #1 Office is located at 1960 Bronson Road, Building Two, Fairfield, CT 06854. Its main
telephone number is 800-288-5513. Our employees may travel to that office by means of foot, car,
train, and taxi. We engage in order taking and entry at this location.
Our Location #2 Office is located at 1333 Broadway, 6th Floor Suite 622, New York, NY 10018. Its
main telephone number is 888-640-1007. Our employees may travel to that office by means of foot,
car, train, and taxi. We engage in order taking and entry at this location.
Our Location #3 is located at One Financial Place, 440 S. LaSalle St, 4th Floor, Chicago, IL 60605. Its
main telephone number is 800-444-0603. Our employees may travel to that office by means of foot,
car, train, and taxi. We engage in order taking and entry at this location.
Our Location #5 is located at 680 Main Street Water Town, CT 06795 and 10 Water Street, Mystic,
CT 06355. Its main telephone number is 860-945-6043. Our employees may travel to that office by
means of foot, car, train, and taxi. We engage in order taking and entry at this location.
Our Location #6 is located at 2764 Whitney Ave, Second Floor, Hamden, CT 06518. Its main
telephone number is 203-248-8587. Our employees may travel to that office by means of foot, car,
train, and taxi. We engage in order taking and entry at this location.
Our Location #7 is located at 153 South Main Street, Newtown, CT 06470. Its main telephone number
is 203-270-7700. Our employees may travel to that office by means of foot, car, train, and taxi. We
engage in order taking and entry at this location.
Our office Location #8 is located at 553 Monarch Ridge Drive, Walnut Creek, CA 94597. Its main
telephone number is 888-872-3757. Our employees may travel to that office by means of foot, car,
train, and taxi. We engage in order taking and entry at this location.
Our Office Location #9 is located at 1855 Olympic Blvd, Suite 165, Walnut Creek, CA 94596. Its
main telephone number is 800-299-5568. Our employees may travel to that office by means of foot,
car, train, and taxi. We engage in order taking and entry at this location.
Our Office Location #11 is located at 147 East Road, Alford, MA 01266. Its main telephone number is
888-862-7407. Our employees may travel to that office by means of foot, car, train, and taxi. We
engage in order taking and entry at this location.
Our Office Location # 12 is located at 859 Tunxis Hill Road, Fairfield, CT 06825. Its main telephone
number is 203-333-7915. Our employees may travel to that office by means of foot, car, train, and taxi.
We engage in do not order taking and entry at this location.
Our Office Location # 17 is located at 2235 Corte Cicuta, Carlsbad, and CA 92009. Its main telephone
number is 760-635-3850. Our employees may travel to that office by means of foot, car, train, and taxi.
We do not engage in order taking and entry at this location.
Our Office Location #19 is located at 24 Thorpe Street, Fairfield, CT 06824. Its main telephone
number is 203-259-4004. Our employees may travel to that office by means of foot, car, train, and taxi.
We do not engage in order taking and entry at this location.
Our Office Location 14 is located at 30 Mill Street, Unionville, CT 06085. Its main telephone number
is 860-675-4227. Our employees may travel to that office by means of foot, car, train, and taxi. We do
not engage in order taking and entry at this location.
Our Office Location #15 is located at 2335 Diamond J Place, Reno, NV 89511. Its main telephone
number is 775-829-1793. Our employees may travel to that office by means of foot, car, train, and taxi.
We engage in order taking and entry at this location.
Our Office Location #16 is located at 7 Academy Street, Salisbury, CT 06068. Its main telephone
number is 800-750-8867. Our employees may travel to that office by means of foot, car, train, and taxi.
We do not engage in order taking and entry at this location.
Our Office Location #26 is located at 20 Juniper Place, Wilton, CT 06897. Its main telephone number
is 203-761-1502. Our employees may travel to that office by means of foot, car, train, and taxi. We do
not engage in order taking and entry at this location.
Our Office Location # 18is located at 504 Pleasant Street, Somerset, MA 02726. Its main telephone
number is 508-646-3783. Our employees may travel to that office by means of foot, car, train, and
taxi. We do not engage in order taking and entry at this location.
Our Office Location # 19 is located at 132 Bacon Road, Roxbury, CT 06783. Its main telephone
number is 860-354-1105. Our employees may travel to that office by means of foot, car, train, and taxi.
We do not engage in order taking and entry at this location.
Our Office Location #21 is located at 5 Deer Run Circle, S. Londonderry, VT 05155. Its main
telephone number 802-824-8184. Our employees may travel to that office by means of foot, car, train,
and taxi. We do not engage in order taking and entry at this location.
In the event of an SBD, we will move our staff from affected offices to the closest of our unaffected
office locations. If none of our other office locations is available to receive those staff, we will move
them to our back up site located at 135 Redding Road, Easton CT main telephone number is 203-256-
1437.
If SIPC determines that we are unable to meet our obligations to our customers or if our liabilities
exceed our assets in violation of Securities Exchange Act Rule 15c3-1, SIPC may seek to appoint a
proprietary and confidential 9
trustee to disburse our assets to customers. We will assist SIPC and the trustee by providing our books
and records identifying customer accounts subject to SIPC regulation.
Rules: NASD Rule 3510(a); Securities Exchange Act Rule 15c3-1; 15 U.S.C. 78eee (2003).
Our firm maintains its primary hard copy books and records and its electronic records at 1960 Bronson
Road, Fairfield, CT 06824. Dale Brown, Office Manager, 203-255-3838 is responsible for the
maintenance of these books and records. Many primary records are transmitted to our clearing firm
and are retrievable .Our firm maintains other documents and forms that are not transmitted to our
clearing firm which are listed on Exhibit A, attached.
Our firm maintains its back-up hard copy books and records. These records may be in paper or
electronic format. Dale Brown, Office Manager, 203-255-3838 is responsible for the maintenance of
these back-up books and records. Our firm backs up its paper records by copying and taking them to
our back-up site. Electronic records are backed up by tape drive, which is taken to our back up site
daily.
In the event of an internal or external SBD that causes the loss of our paper records, we will physically
recover them from our back-up site. If our primary site is inoperable, we will continue operations from
our back-up site or an alternate location. For the loss of electronic records, we will either physically
recover the storage media or electronically recover data from our back-up site, or, if our primary site is
inoperable, continue operations from our back-up site or an alternate location.
A.Operational Risk
In the event of an SBD, we will determine the value and liquidity of our investments and other assets
to evaluate our ability to continue to fund our operations and remain in capital compliance. We will
contact our clearing firm, critical banks, and investors to apprise them of our financial status. If we
determine that we may be unable to meet our obligations to those counter-parties or otherwise continue
to fund our operations, we will request additional financing from our bank or other credit sources to
fulfill our obligations to our customers and clients. If we cannot remedy a capital deficiency, we will
file appropriate notices with our regulators and immediately take appropriate steps, including
appropriate notification and release of relevant information to all interested parties.
Our firm’s “mission critical systems” are those that ensure prompt and accurate processing of
securities transactions, including order taking, entry, execution, comparison, allocation, clearance and
settlement of securities transactions, the maintenance of customer accounts, access to customer
accounts, and the delivery of funds and securities. More specifically, these systems include:
We have primary responsibility for establishing and maintaining our business relationships with our
customers and have sole responsibility for our mission critical functions of order taking and entry and
execution. Our clearing firm provides, through contract, the comparison, allocation, clearance and
proprietary and confidential 11
settlement of securities transactions, the maintenance of customer accounts, access to customer
accounts, and the delivery of funds and securities.
Our clearing firm contracts provide that our clearing firms will maintain business continuity plans and
the capacity to execute those plans. Our clearing firm represents that they will advise us of any
material changes to its plan that might affect our ability to maintain our business [and presented us
with an executive summary of such plans, which are attached]. In the event our clearing firm executes
its plan, it represents that it will notify us of such execution and provides us equal access to services as
its other customers. If we reasonably determine that our clearing firm has not or cannot put its plan in
place quickly enough to meet our needs, or is otherwise unable to provide access to such services, our
clearing firm represents that it will assist us in seeking services from an alternative source.
Our clearing firm represents that they back up our records at alternate remote sites. Our clearing firm
represent that they operate a back-up operating facility in a geographically separate area with the
capability to conduct the same volume of business as its primary site. Our clearing firm has also
confirmed the effectiveness of its back-up arrangements to recover from a wide scale disruption by
testing (and it has confirmed that it tests its back-up arrangements every quarter at Pershing).
Recovery-time objectives provide concrete goals to plan for and test against. They are not, however,
hard and fast deadlines that must be met in every emergency situation, and various external factors
surrounding a disruption, such as time of day, scope of disruption, and status of critical infrastructure—
particularly telecommunications—can affect actual recovery times. Recovery refers to the restoration
of clearing and settlement activities after a wide-scale disruption; resumption refers to the capacity to
accept and process new transactions and payments after a wide-scale disruption. Our clearing firm has
the following SBD recovery times and resumption objectives: recovery time period of 4 hours at
Pershing and resumption time of four hours at Pershing.
Currently, our firm receives orders from customers via telephone/fax/ electronically or in person visits
by the customer. During an SBD, either internal or external, we will continue to take orders through
any of these methods that are available and reliable, or in addition, as communications permit, we will
inform our customers what alternatives they have to send their orders to us. Customers will be
informed of alternatives by voicemail, webpage notification (www.nutmegsecurities.com ) email or
telephone. If necessary, we will advise our customers to place orders directly with our clearing firm at
proprietary and confidential 12
Pershing LLC
P.O. Box 2065
Jersey City NJ 07303
Tel: 201-413-3635
Alternate: 213-624-6100 extension 500
Facsimile: 201-413-413-5368
2.Order Entry
Currently, our firm enters orders by recording them on paper and electronically and by sending them
to our clearing firms electronically or telephonically. Additionally, we may place customer orders
through MASLOW electronic trading system. We have contacted MASLOW and were told that, under
its BCP, we can expect resumption of trading ability within one business day (BCP Plan questionnaire
attached).
In the event of an internal SBD, we will enter and send records to our clearing firm by the fastest
alternative means available, which include telephone, email, facsimile, US Post or messenger service.
In the event of an external SBD, we will maintain the order in electronic or paper format, and deliver
the order to the clearing firm by the fastest means available when it resumes operations. In addition,
during an internal SBD, we may need to refer our customers to deal directly with our clearing firm for
order entry.
3.Order Execution
We currently execute orders by use of trading systems described above; these systems depend on the
functionality of clearing firms. In the event of an internal SBD, we would temporarily relocate our
staff to the nearest office location with the equipment necessary to perform trade execution functions
(see office location list above). In the event of an external SBD, we would move employees to the
respective closest functioning office location, if none was available we would transfer key staff to the
Easton back-up site and if none of these options were feasible we would direct clients to place orders
directly with our clearing firms by use of all available means (email, webpage notification, telephone,
US post).
In addition to those services listed above in this section we also sell mutual funds and some annuity
products. In the event of an internal SBD, we would rely on the methods described above to continue
proprietary and confidential 13
to perform these functions. In the event of an external SBD, we would rely upon the methods described
above and if deemed necessary advise clients by webpage, voicemail, telephone or US POST to
contact their respective clearing firm/mutual fund/insurance company directly to ensure they are able
to transact business and have access to funds.
Our firm relies, by contract, on our clearing firm to provide order execution, order comparison, order
allocation, and the maintenance of customer accounts, delivery of funds and securities, and access to
customer accounts.
A.Customers
We now communicate with our customers using the telephone, e-mail, our Web site, fax, U.S. mail,
and in person visits at our firm. In the event of an SBD, we will assess which means of communication
are still available to us, and use the means closest in speed and form (written or oral) to the means that
we have used in the past to communicate with the other party. For example, if we have communicated
with a party by e-mail but the Internet is unavailable, we will call them on the telephone and follow up
where a record is needed with paper copy in the U.S. mail.
B. Employees
We now communicate with our employees using the telephone, e-mail, and in person. In the event of
an SBD, we will assess which means of communication are still available to us, and use the means
closest in speed and form (written or oral) to the means that we have used in the past to communicate
The person to invoke use of the call tree is: Mathew Rochlin
DJ Geils
proprietary and confidential 15
Rich Mahoney
Steve Marchese
Bryan Bogen
Ed Perry
Rocco Marciano
C. Regulators
MSRB
703-797-6600
1900 Duke Street
Suite 600
Alexandria, VA 22314
NASD
617-532-3400
617-451-3524 Fax
SEC
617-454-5900
73 Tremont Street
Suite 600
Boston, MA 02108
Marc Gera
geram@sec.gov
State Of Connecticut
860-240-8245
260 Constitution Plaza
Hartford, CT 06103
Salvatore Cannata
salvatore.cannata@po.state.ct.us
We are also responsible for reporting to the following State Regulators as we conduct business in these
States;
Alabama
Securities Commission
770 Washington Avenue
Suite 570
Montgomery, AL 36130-4700
(334) 242-2984 (800) 222-1253
(334) 242-0240 (Fax)
asc@asc.state.al.us
www.asc.state.al.us/
Alaska
Dept. of Community and Economic Dev.
Div. of Banking, Securities & Corporations
State Office Building
150 Third Street, Room 217
Juneau, AK 99811-0807
Mark R. Davis
Director
mark_davis@dced.state.ak.us
Arizona
Corporation Commission
Securities Division
1300 West Washington Street
Third Floor
Phoenix, AZ 85007
(602) 542-4242
(602) 594-7470 (Fax)
accsec@ccsd.cc.state.az.us
www.ccsd.cc.state.az.us/
Matthew J. Neubert
Director
(602) 542-0605
(602) 594-7451 (Fax)
mn@ccsd.cc.state.az.us
Arkansas
Securities Department
Heritage West Building
201 East Markham, Room 300
Michael Johnson
Securities Commissioner
michael.johnson@mail.state.ar.us
California
Department of Corporations
1515 K Street
Suite 200
Sacramento, CA 95814
(916) 445-7205
(916) 445-7975 (Fax)
www.corp.ca.gov
William P. Wood
California Corporations Commissioner
(916) 324-9011
Timothy L. Le Bas
Assistant Commissioner & General Counsel
Office of Law & Legislation
Colorado
Division of Securities
1580 Lincoln Street
Suite 420
Denver, CO 80203
(303) 894-2320
(303) 861-2126 (Fax)
www.dora.state.co.us/securities
Fred J. Joseph
Securities Commissioner
fred.joseph@dora.state.co.us
James B. Ropp
Securities Commissioner
(302) 577-8925
jropp@state.de.us
District of Columbia
Department of Insurance &
Securities Regulation
Securities Bureau
810 First Street, NE
Suite 622
Washington, DC 20002
(202) 727-8000
(202) 535-1199 (Fax)
www.disr.washingtondc.gov
Theodore A. Miles
Director, Securities Bureau
(202) 442-7800
theodore.miles@dc.gov
Florida
Office of Financial Regulation
200 East Gaines Street
The Fletcher Building
Tallahassee, FL 32399-0372
(850) 410-9805
(850) 410-9748 (Fax)
www.dbf.state.fl.us/licensing
Don Saxon
Director
dsaxon@dfs.state.fl.us
Wayne Howell
Director, Division of Securities
hwhowell@sos.state.ga.us
Hawaii
Department of Commerce & Consumer Affairs
Division of Business Registration
1010 Richards Street
2nd Floor
Honolulu, HI 96813
P.O. Box 40
Honolulu, HI 96810
(808) 586-2744
(808) 586-2733 (Fax)
http://www.hawaii.gov/dcca/breg-seu/
Ryan S. Ushijima
Commissioner of Securities
rushijim@dcca.state.hi.us
Idaho
Department of Finance
700 West State Street
2nd Floor
Boise, ID 83702
Illinois
Office of the Secretary of State
Securities Department
520 South Second Street
Suite 200 Lincoln Tower
Springfield, IL 62701
(217) 782-2256 (800) 628-7937
(217) 524-2172 (Fax)
http://www.cyberdriveillinois.com/
departments/securities/
Tanya Solov
Director of Securities
69 West Washington
12th Floor, Suite 1220
Chicago, IL 60602
(312) 793-3384
(312) 793-1202 (Fax)
tsolov@ilsos.net
Indiana
Office of the Secretary of State
Securities Division
302 West Washington
Room E-111
Indianapolis, IN 46204
(317) 232-6681
(317) 233-3675 (Fax)
http://www.in.gov/sos/securities/index.html
James Joven
Securities Commissionner
jjoven@sos.state.in.us
Iowa
Insurance Division
Securities Bureau
340 E. Maple Street
Craig A. Goettsch
Superintendent of Securities
craig.goettsch@iid.state.ia.us
Kansas
Office of the Securities Commissioner
618 South Kansas Avenue
Topeka, KS 66603-3804
(785) 296-3307
(785) 296-6872 (Fax)
securities@securities.state.ks.us
http://www.securities.state.ks.us
Chris Biggs
Commissioner
chris.biggs@securities.state.ks.us
Kentucky
Department of Financial Institutions
1025 Capital Center Drive
Suite 200
Frankfort, KY 40601
(502) 573-3390 (800) 223-2579
(502) 573-8787 (Fax)
http://dfi.ky.gov/
Colleen Keefe
Director of Securities
(502) 573-2182 (Fax)
colleen.keefe@mail.state.ky.us
Louisiana
Securities Commission
Office of Financial Institutions
8660 United Plaza Blvd.
Second Floor
Baton Rouge, LA 70809-7024
(225) 925-4660
Rhonda Reeves
Deputy Securities Commissioner
rreeves@ofi.state.la.us
Maine
Office of Securities
121 State House Station
Augusta, ME 04333
(207) 624-8551
(207) 624-8590 (Fax)
http://www.state.me.us/pfr/sec/sec_index.htm
Christine A. Bruenn
Securities Administrator
(207) 624-8555
christine.a.bruenn@state.me.us
Maryland
Office of the Attorney General
Division of Securities
200 Saint Paul Place
Baltimore, MD 21202-2020
(410) 576-6360
(410) 576-6532 (Fax)
securities@oag.state.md.us
www.oag.state.md.us/
securities/index.htm
Massachusetts
Securities Division
One Ashburton Place
Room 1701
Boston, MA 02108
(617) 727-3548
Matthew J. Nestor
First Deputy Secretary of the Commonwealth
(617) 727-7774
matthew.nestor@sec.state.ma.us
Michigan
Conduct Review & Securities Division
Office of Financial & Insurance Services
Department of Labor & Economic Growth
611 West Ottawa St, Third Floor
Lansing, MI 48933
Linda A. Watters
Commissioner
Office of Financial & Insurance Services
Minnesota
Department of Commerce
85 East 7th Place
Suite 500
Saint Paul, MN 55101
(651) 296-4026
(651) 296-4328 (Fax)
commerce@state.mn.us
http://www.state.mn.us
Scott P. Borchert
Director, Enforcement Division
(651) 296-9431
scott.borchert@state.mn.us
Mississippi
Office of the Secretary of State
James O. Nelson, II
Assistant Secretary of State
Business Regulation & Securities Division
(601) 359-6747
jnelson@sos.state.ms.us
Missouri
Office of the Secretary of State
600 West Main Street
Jefferson City, MO 65101
(573) 751-4136
(573) 526-3124 (Fax)
http://www.sos.mo.gov/securities/
Douglas M. Ommen
Securities Commissioner
(573) 751-4704
ommend@sosmail.state.mo.us
Montana
Office of the State Auditor
Securities Department
840 Helena Avenue
Helena, MT 59601
John Morrison
Securities Commissioner
jmorrison@state.mt.us
Jack E. Herstein
Assistant Director
jackh@bkg.state.ne.us
Nevada
Secretary of State
Securities Division
555 East Washington Avenue
5th Floor, Suite 5200
Las Vegas, NV 89101
(702) 486-2440
(702) 486-2452 (Fax)
sosmail@govmail.state.nv.us
www.sos.state.nv.us/securities/
Charles Moore
Securities Administrator
cemoore@govmail.state.nv.us
New Hampshire
Bureau of Securities Regulation
State House Annex
Suite 317A 3rd Floor
Concord, NH 03301
(603) 271-1463
(603) 271-7933 (Fax)
http://webster.state.nh.us/
sos/securities/
Mark Connolly
Deputy Secretary of State
New Jersey
Department of Law & Public Safety
Bureau of Securities
153 Halsey Street
6th Floor
Newark, NJ 07102
Franklin L. Widmann
Chief
(973) 504-3610
(973) 504-3639 (Fax)
widmannf@smtp.lps.state.nj.us
New Mexico
Regulation & Licensing Department
Securities Division
2550 Cerrillos Road
Santa Fe, NM 87505
(505) 476-4580
(505) 984-0617 (Fax)
rldsd@state.nm.us
www.rld.state.nm.us/securities/
Bruce R. Kohl
Director of Securities
bruce.kohl@state.nm.us
New York
Office of the Attorney General
Investor Protection & Securities Bureau
120 Broadway
23rd Floor
New York, NY 10271
(212) 416-8200
(212) 416-8816 (Fax)
Gary Connor
First Deputy Bureau Chief
North Carolina
Department of the Secretary of State
Securities Division
P.O. Box 29622
Raleigh, NC 27626-0525
(919) 733-3924
(919) 821-0818 (Fax)
www.secretary.state.nc.us/sec/
David S. Massey
Deputy Securities Administrator
dmassey@mail.secstate.state.nc.us
North Dakota
Securities Commission
600 East Boulevard
State Capitol, 5th Floor
Bismarck, ND 58505-0510
(701) 328-2910
(701) 255-3113 (Fax)
seccom@state.nd.us
www.state.nd.us/securities
Karen Tyler
Commissioner
(701) 328-4702
(701) 328-0125 (Fax)
ktyler@state.nd.us
Ohio
Division of Securities
77 South High Street
22nd Floor
Columbus, OH 43215
(614) 644-7381
(614) 466-3316 (Fax)
www.securities.state.oh.us
Oklahoma
Department of Securities
1st National Center, Suite 860
120 N. Robinson
Oklahoma City, OK 73102
(405) 280-7700
(405) 280-7742 (Fax)
general@securities.state.ok.us
www.securities.state.ok.us/
Irving Faught
Administrator
(405) 280-7706
ilf@securities.state.ok.us
Oregon
Department of Consumer & Business Services
Div. of Finance & Corp. Securities
350 Winter Street, NE
Room 410
Salem, OR 97301-3881
(503) 378-4387
(503) 947-7862 (Fax)
www.cbs.state.or.us/external/dfcs
Floyd Lanter
Division Administrator
floyd.g.lanter@state.or.us
Pennsylvania
Securities Commission
Eastgate Office Building
1010 North 7th Street, 2nd Floor
Harrisburg, PA 17102-1410
(717) 787-8061
(717) 783-5122 (Fax)
www.psc.state.pa.us
Puerto Rico
Commission of Financial Institutions
1492 Ponce de Leon Avenue
Suite 600
San Juan, PR 00907
Rhode Island
Department of Business Regulation
233 Richmond Street
Suite 232
Providence, RI 02903-4232
(401) 222-3048
(401) 222-5629 (Fax)
secdiv@dbr.state.ri.us
www.dbr.state.ri.us
South Carolina
Office of the Attorney General
Securities Division
Rembert C. Dennis Office Building
1000 Assembly Street
Columbia, SC 29201
T. Stephen Lynch
Deputy Securities Commissioner
slynch@ag.state.sc.us
South Dakota
Dept. of Revenue and Regulation
Division of Securities
445 E Capitol Avenue
Pierre, SD 57501-2000
(605) 773-4823
(605) 773-5953 (Fax)
securities@crpr1.state.sd.us
http://www.state.sd.us/drr2/reg/securities/index.htm
Gail Sheppick
Director
gail.sheppick@state.sd.us
Tennessee
Department of Commerce & Insurance
Securities Division
Davy Crockett Tower, Suite 680
500 James Robertson Parkway
Nashville, TN 37243-0575
(615) 741-2947
(615) 532-8375 (Fax)
securities.1@state.tn.us
http://www.state.tn.us/commerce/securities/index.html
Daphne D. Smith
Assistant Commissioner for Securities
Texas
State Securities Board
208 East 10th Street
Utah
Department of Commerce
Division of Securities
160 East 300 South
2nd Floor
Salt Lake City, UT 84111
S. Anthony Taggart
Director
(801) 530-6606
ttaggart@utah.gov
Vermont
Department of Banking, Insurance, Securities & Health Care
Administration
89 Main Street
Drawer 20
Montpelier, VT 05620-3101
(802) 828-3420
(802) 828-2896 (Fax)
www.bishca.state.vt.us/
proprietary and confidential 34
Tanya Durkee
Deputy Commissioner of Securities
tdurkee@bishca.state.vt.us
Virginia
State Corporation Commission
Division of Securities & Retail Franchising
1300 East Main Street
9th Floor
Richmond, VA 23219
Washington
Department of Financial Institutions
Securities Division
150 Israel Road, SW
Tumwater, WA 98501
Michael E. Stevenson
Director of Securities
mstevenson@dfi.wa.gov
West Virginia
Office of the State Auditor
Securities Division
Building 1
Room W-100
Chester F. Thompson
Deputy Commissioner of Securities
chestert@wvauditor.com
Wisconsin
Department of Financial Institutions
Division of Securities
345 W. Washington Avenue
4th Floor
Madison, WI 53703
Patricia D. Struck
Administrator
(608) 266-3432
patricia.struck@dfi.state.wi.us
Wyoming
Secretary of State
Securities Division
State Capitol, Room 109
200 W. 24th Street
Cheyenne, WY 82002-0020
(307) 777-7370
(307) 777-5339 (Fax)
securities@state.wy.us
http://soswy.state.wy.us/securiti/securiti.htm
Thomas Cowan
Division Director
(307) 777-5348
tcowan@state.wy.us
A.Business constituents
We have contacted our critical business constituents (businesses with which we have an ongoing
commercial relationship in support of our operating activities, such as vendors providing us critical
services), and determined the extent to which we can continue our business relationship with them in
light of the internal or external SBD. We will quickly establish alternative arrangements if a business
constituent can no longer provide the needed goods or services when we need them because of a SBD
to them or our firm. Our major suppliers are listed on Exhibit B attached.
B.Banks
We have contacted our banks and lenders to determine if they can continue to provide the financing
that we will need in light of the internal or external SBD. The bank maintaining our operating account
is Westport National Bank, located at 1495 Post Road East, Westport CT 06880, Contact is Helen A.
Ranholm, telephone; 203-254-6304. The bank maintaining our Proprietary Account of Introducing
Brokers/Dealers (PAIB account) is the same as our Operating Account. If our banks and other lenders
are unable to provide the financing, we will seek alternative financing immediately from Chase Bank,
Main Street, Westport CT. Telephone 203-935-9935.].
C.Counter-Parties
We have contacted our critical counter-parties, such as institutional customers, to determine if we will
be able to carry out our transactions with them in light of the internal or external SBD. Where the
XII.Regulatory Reporting
Our firm is subject to regulation by the regulators listed above in X, part C. We now file reports with
our regulators using paper copies in the U.S. mail, and electronically using fax, e-mail, and the
Internet. In the event of an SBD, we will check with the SEC, NASD, and other regulators to
determine which means of filing are still available to us, and use the means closest in speed and form
(written or oral) to our previous filing method. In the event that we cannot contact our regulators, we
will continue to file required reports using the communication means available to us.
Our firm will update this plan whenever we have a material change to our operations, structure,
business or location or to those of our clearing firm. In addition, our firm will review this BCP
annually, on October 1st to modify it for any changes in our operations, structure, business, or location
or those of our clearing firm.
Signed: _______________________________
Title: _______________________________
Date: _______________________________
Exhibit
A
American Skandia
One Corporate Drive
Shelton, CT 06484
800-752-6342
Mutual Fund
Anthem BCBS CT
P.O.Box 778
Lewiston, ME 04243
800-843-6096
Medical Insurance
Archipelago LLC
100 S. Wacker Drive
Suite 2012
Chicago, IL 60606
888-514-7284
Book Orders Electronic Trading
Arrowhead Solutions
109 Highland Ave
Needham, MA 02494
781-449-5077
Book Orders Electronic Trading
AT&T
P.O.Box 277019
Atlanta, GA 30384
800-235-7524
Phone Communication
BD Week
P.O.Box 90608
Washington, DC 20077
301-287-2223
Subscription
Bloomberg LP
P.O.Box 30244
Hartford, CT 06150
212-318-2500
Quotes
Citizen’s Bank
P.O. Box M
Providence, RI 02901
800-922-9999
Matt Personal
CNA Insurance
P.O. Box 371952
Pittsburgh, PA 15250
203-966-2677
Workers Compensation and Car Insurance
Comscan
P.O.Box 14019
proprietary and confidential 42
Newark, NJ 01798
212-747-0343
Syndicate Commission Filings
Cingular Wireless
P.O. Box 6428
Carol Stream, IL 60197-6428
800-331-0500
Steve Marchese Phone
Commissioner of Revenue
P.O.Box 2965
Hartford, CT 06104
860-947-1988
Taxes
DHL Inc
P.O. Box 78016
Phoenix, CA 85062
800-225-5345
Mail
Direct TV (NYC)
P.O.Box 830032
Baltimore, MD 21283
800-531-5000
Cable TV Service
Instinet Corporation
P.O Box 26097
New York, NY 10087
201-595-3295
INET NASDAQ Level 2
Larry Liberfarb
11 Vanderbilt Avenue
Suite 220
Norwood, MA 02062
781-255-8800
Accountant
NYSE
11 Wall Street
proprietary and confidential 46
New York, NY 10005
212-656-3000
Connectivity
NYFIX Inc
Stamford Harbor Park
333 Ludlow Street
Stamford, CT 06902
203-425-8000
Connectivity
OASYS
2967 Collection Center Drive
Chicago, IL 60693
617-856-2566
Direct Retrieval Fees
Pershing LLC
One Pershing Plaza
Jersey City, NY 07399
201-413-2000
Clearing Services
Progressive
P.O. Box 13593
Philadelphia, PA 19101
800-999-8781
Gay’s Car Insurance
PayChex
11 Riverbend Drive South
P.O.Box 4816
Stamford, CT 06907
203-973-1050
Pay Roll Services
Sprint
P.O. Box 1769
Newark NJ 07101
888-788-4727
Cell Phones
Sun Guard
7408 Collection Center Drive
proprietary and confidential 48
Chicago, IL 60693
201-840-5611
Brokerage fees
SIPC
805 15th Street N.W.
Suite 800
Washington, DC 20005
202-371-8300
SIPC
Thomson Financial
P.O. Box 71601
Chicago, IL 60694
617-856-2146
Autex trading info system
Verizon Wireless
P.O. Box 489
Newark, NJ 07101
800-922-5469
Cell Phones
A If you answered, “Yes” to We have plans for both power and network
2 Question (A1), what type of failure outages for our colocation datacenter in
scenarios or outages do you plan for?
Marlboro. We have redundant power and
data feeds into our site and also have on site
generators to keep us operational.
A If you answered, “Yes” to Our Power Outage plan and our network
3 Question (A1), what duration of time is
assumed for each type of failure scenario or outage plan are designed for 100% uptime. It
outage you plan for? is designed for any duration of time.
B Crisis Communication
B3 How do you notify your clients of Phone, e-mail, fax, web site.
an outage?
B4 Do you provide your customers Yes ___X_____ or No ________
with detailed contact information in
the event of an outage or
emergency?
B5 Please describe how you notify Our team is first notified by e-mail, then by
your team of an incident and direct phone or pager. Depending on the incident,
them through the recovery. the person who is
on call addresses the incident. All team
members are trained for all types of incidents
that may occur.
C Back Up Facilities
D Testing
Pershing ®
CONFIDENTIAL
XVII.Mission
Pershing's mission for contingency planning is to ensure the continuous, reliable
delivery of service to Pershing's customers while maintaining regulatory compliance.
1. Pershing assumes that not more than one of its critical facilities will be affected at one time. All
other facilities will remain accessible and operational.
2. Pershing assumes that its critical infrastructure (such as electric, water, heat, ventilation, air
conditioning, etc.) will remain operational as long as the facility is accessible. This assumption is
based on the amount of effort that Pershing has undertaken to fortify these facilities (for instance,
Pershing maintains redundant generators, chillers, etc.).
If an event causes the evacuation of our operations center in Hudson County, New Jersey,
Pershing will declare a business continuity event, and activate the business continuity plan.
This will result in a four-hour processing outage to enable switching of data and voice
communications and relocation of associates to our data center in Morris County, New Jersey.
If an event causes the closing of our data center in Morris County, New Jersey, Pershing will
declare a disaster recovery event, and activate the Disaster Recovery plan. This will result in a
four-hour outage while our mainframe processing is transferred to our Hudson County back-up
site.
3. Pershing assumes that all customer sites and facilities (such as electricity, water, heat,
ventilation, air conditioning, etc.) are accessible and operational.
4. Pershing assumes that it will have adequate staffing available during the event.
63
XIX.Event Management Structure
Pershing has established an event management structure to respond effectively to business
emergencies. This structure will be activated during any business continuity or disaster recovery event.
At the center of the event management structure is Pershing’s Command and Control Center, which is
occupied by the Incident Management Team (IMT).
Executive Commanders
IMT Coordinators
Audit
Chenai
Branch Offices
Response Business
Teams Units
Voice/Data/
Infrastructure Application
Desktop Response Business Unit Business Unit Business Unit
Response Team Response Team
Team
IMT Liaison IMT Liaison IMT Liaison Line Manager Line Manager Line Manager
BCP Coordinator BCP Coordinator BCP Coordinator
A.
64
B.Incident Management Team (IMT)
IMT members and their alternates are proxy representatives whose extensive experience
at Pershing allows them to understand the implications of individual business unit issues
while maintaining a corporate perspective. Their responsibilities include the following:
Ensure departments comply with requests for status or directives from IMT.
Obtain the operational status of the departments or customer groups they represent.
Assess incident and determine the firm-level response, including invocation of
business continuity or disaster recovery plans.
Ensure responses are implemented correctly.
Coordinate with essential business personnel, for instance managers
and business continuity coordinators.
1.
Executive Commander
Focal point for decision-making and execution of strategies for the IMT.
Acts as a liaison to the Executive Committee
Coordinates activities at the corporate and business unit levels
IMT Coordinator
Coordinates the flow of information into the IMT, structures meetings, etc.
Technology
Ensure appropriate information is collected and presented to IMT
Coordinate allocation of PTG resources
Ensure that IMT directives are implemented
Act as liaison with technical vendors/service providers
65
Support and facilitate firm’s contingency actions
Ensure contingency actions undertaken are compliant with laws, rules and regulations
and provide sufficient controls.
Act as liaison with regulatory agencies
C.Response Teams
D.Business Units
C.Inbound Communications
1.
2.Problem Notification
It is the expectation that customers continue to use existing
communication channels with Pershing.
66
Customers who wish to notify Pershing of problems will continue to call
Pershing’s Technology Customer Service at (201) 413-2001, as they would normally.
3.
67
XXI.Security Policies
A.
B.Data Security
Pershing produces and stores paper and/or magnetic copies of all relevant access data and
programs so that in the event that the security access files or programs are destroyed or
corrupted due to an event, they can be quickly reconstructed in accordance with
Securities and Exchange Commission regulations.
Only Pershing associates and authorized vendor support personnel will be allowed
access. All access will be monitored. ALL associates will be required to show
Security a valid Pershing Identification Card and to sign in with Lobby Security at the
start of the business day and each time thereafter upon entering the facility
Access to restricted areas (such as the data center) will only be authorized after an
access validity verification by Security. This access will be granted only after
verification by Security of access validity. Security will maintain an up-to-date listing
of all associates with current card or sign-in authorization to access these areas
Any access required by associates, vendors, and consultants must be approved by the
senior management of the restricted areas involved
Vendors that must be on-site in order to perform any required maintenance or repairs
must be accompanied by a Pershing associate
68
XXII.Business Continuity
2.Recovery Sites
Pershing maintains two business resumption sites for personnel: The Morris County
facility provides for the relocation of over 700 associates to resume processing
operations, and the alternate facility in Hudson County provide for the relocation of 250
traders. Each operations desktop or trading position used in business continuity is loaded
with all software, as well as all telecommunication requirements needed for the associate
to continue in their role. Centralized fax and wire printer rooms are maintained where all
communications to Pershing are centrally located and controlled.
Business continuity “partitions” on the hard drives of the recovery workstations are used
in business continuity to hold client server, market data, and desktop applications
separately from the day-to-day uses of the machine.
Pershing also maintains a telephone rollover scheme whereby inbound Pershing Plaza
calls and faxes are routed to Morris County or the alternate facility in Hudson County by
the local telephone company.
3.Testing
Each seat in both facilities is tested at least twice a year. These Saturday tests involve
700 associates at Morris County and 250 traders at the alternate facility in Hudson
County logging into the business continuity machines and testing accessibility to all
applications.
69
XXIII.Disaster Recovery
1.Mainframe
Pershing has implemented a state-of-the-art internal mainframe disaster recovery
capability based on IBM Geographically Dispersed Parallel Sysplex/eXtended Remote
Copy (GDPS/XRC). GDPS/XRC provides replication of data between the primary
Morris County data center and the secondary data center in Hudson County. XRC is the
disk-mirroring component and GDPS is the automation component. The mirrored data
center automatically copies more than 20 terabytes (7,300 direct access storage device
volumes) of information - equivalent to the text content of 20 million 400-page books.
The mainframe systems are restarted and operational in less than four hours with less
than five minutes data loss. Pershing is the world’s largest mirrored data center using
IBM mainframes and storage devices.
2.Distributed Systems
Front-end client/server, web, and interactive voice recognition (IVR)
systems are engineered to provide load balancing between the data centers in Morris
County, New Jersey and Hudson County, New Jersey. In the event of an outage in
Hudson County, the Morris County servers will assume the entire workload.
Conversely, if there is an outage in Morris County, the Hudson County servers will
assume the entire workload. In both cases, the transition requires little or no manual
intervention.
3.Network
Internal redundancy is inherent within the network design with
production network traffic supported from two geographically dispersed facilities,
70
Morris County and Hudson County. Both facilities are designed to support the network
in the event of a disaster at either location.
4.Testing
The disaster recovery capabilities are aggressively tested on a quarterly
basis. After each test, a written critique is prepared documenting any problems
encountered during the test or areas where improvement may be necessary. If you
would like to participate in one of our tests please contact your Account or Relationship
Manager. Client participation is welcomed, but due to the complexity involved it is
limited to a first come/first serve basis and no more than 10 clients per test.
71