This is the Business Continuity Plan (“BCP”) for Longbow Securities, LLC (the “firm”)
Our firm’s three emergency contact persons are:
Primary Phone: (216) 328-5081
Primary Fax: (216) 986-0720
Alternate Email: email@example.com
Alternate Phone: (216) 536-0281
Alternate Fax: (216) 803-6009
David S. MacGregor
Primary Phone: (216) 328-5075
Primary Fax: (216) 986-0720
Alternate Email: N/A
Alternate Phone: (216) 258-1140
Alternate Fax: (216) 803-6009
Primary Phone: (216) 328-5057
Primary Fax: (216) 986-0720
Alternate Email: N/A
Alternate Phone: (216) 856-1205
Alternate Fax: (216) 803-6009
The firm will provide FINRA with the contact information for the emergency contact persons through the FINRA Contact System (FCS). Laura Brodbeck will promptly notify FINRA of any change in this information through FCS (but no later than 30 days following the change) and will review, and if necessary update, this information within 17 business days after the end of each calendar year.
Rule: FINRA Rule 4370(f); NASD Rule 1160.
Our firm’s policy is to respond to a Significant Business Disruption (SBD) by safeguarding employees’ lives and firm property, making a financial and operational assessment, quickly recovering and resuming operations, protecting all of the firm’s books and records, and allowing our customers to transact business. In the event that we determine we are unable to continue our business, we will assure customers prompt access to their funds and securities.
A. Significant Business Disruptions (SBDs)
Our plan anticipates two kinds of SBDs, internal and external. Internal SBDs affect only our firm’s ability to communicate and do business, such as a fire in our building. External SBDs prevent the operation of the securities markets or a number of firms, such as a terrorist attack, a city flood, or a wide-scale, regional disruption. Our response to an external SBD relies more heavily on other organizations and systems, especially on the capabilities of our clearing firm.
B. Approval and Execution Authority
Laura Brodbeck, CCO, AMLCO and a registered principal, is responsible for approving the plan and for conducting the required annual review. Ms. Brodbeck has the authority to execute this BCP.
C. Plan Location and Access
Our firm will maintain copies of its BCP plan and the annual reviews, and the changes that have been made to it for inspection. An electronic copy of our plan is located on LongbowFP02/electronics books and records.
Rule: FINRA Rule 4370(b), (d) and (e).
Longbow does not accept customer funds or securities and does not make any markets. Longbow Securities, LLC is engaged in the following types of business:
- Exchange member engaged in exchanged commission business other than floor activities
- Broker or dealer retailing corporate equity securities over-the counter.
- Non-exchange member arranging for transactions in listed securities by exchange member
- Investment Research
Our clearing firm is Pershing LLC, One Pershing Plaza, Jersey City, NJ 07399, (630) 472-7405. Our contact person is Robert E. Heidkamp.
A. Office Location #1
Our Location #1 Office is located at 6050 Oaktree Blvd., 3rd Floor, Independence, OH 44131. Its main telephone number is (216) 986-0700. Our employees may travel to that office by means of foot, car, subway, train, and bus. We engage in order taking and entry at this location.
In the event of an SBD, we will move our staff from affected office(s) to the closest of our unaffected office location(s). If none of our other office locations is available to receive those staff, we will move them to 405 Lexington Avenue, Suite 50A1, New York City, NY 10174. Its main telephone number is (216) 986-0700.
Rule: FINRA Rule 4370(c)(6).
Our firm does not maintain custody of customers’ funds or securities, as we have no retail customers. The limited nature of our business, which consists exclusively as In the event of an internal or external SBD, if telephone service is available, our registered persons will take customer orders or instructions and contact our clearing firm on their behalf, and if our Web access is available, our firm will post on our Web site that customers may access their funds and securities by contacting by contacting the clearing firm directly. The firm will make this information available to customers through its disclosure policy.
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 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: FINRA Rule 4370(a); Securities Exchange Act Rule 15c3-1; see also 15 U.S.C. § 78eee.
Our firm maintains its primary hard copy books and records and its electronic records at 6050 Oaktree Blvd., 3rd Floor, Independence, OH 44131. Jonathan Stoller, Head Trader (216) 328-5057 is responsible for the maintenance of these books and records. Our firm maintains the following document types and forms:
- Corporate Financial Records
- Correspondence – both written and electronic
- Marketing Materials
- Engagement Letters and other contractual obligations
- Subscription Agreements
Our firm maintains its back-up hard copy books and records at the Firm’s main office. These records consist of the firm’s internal accounting records, subscription agreements and paper copies. These records are also maintained at the backup site located at 30559 Pinetree Rd., Unit 203, Pepper Pike, OH 44124. Mr. Stoller, (216) 328-5057 is responsible for the maintenance of these back-up books and records. If our primary site is inoperable, we will continue operations from the back-up site or an alternative location. For the loss of electronic records maintained at the Firm’s main office, we well physically recover the hard copy data from our primary site
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.
Rule: FINRA Rule 4370(c)(1).
A. Operational Risk
In the event of an SBD, we will immediately identify what means will permit us to communicate with our customers, employees, critical business constituents, critical banks, critical counter-parties, and regulators. Although the effects of an SBD will determine the means of alternative communication, the communications options we will employ will include our Web site, telephone voice mail, secure e-mail, etc.. In addition, we will retrieve our key activity records as described in the section above, Data Back-Up and Recovery (Hard Copy and Electronic).
Rules: FINRA Rules 4370(c)(3),(c)(4), (c)(5), (c)(7), (c)(9 & (g)(2)).
B. Financial and Credit 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 to meet our net capital requirement.
Rules: FINRA Rules 4370(c)(3), (c)(8) & (g)(2).
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. The firm’s mission critical system is its clearing firm person.
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, entry and execution. Our clearing firm provides, through contract, the 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.
Our clearing firm contract provides that our clearing firm will maintain a business continuity plan and the capacity to execute that plan. Our clearing firm represents that it 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 its plan. In the event our clearing firm executes its plan, it represents that it will notify us of such execution and provide 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 it backs up our records at a remote site. Our clearing firm represents that it operates 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.
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 time and resumption objectives: recovery time period of within 4 hours; and resumption time of within the same business day.
A. Mission Critical Systems
1. Order Taking
Currently, our firm receives orders from customers via telephone, internet, and instant message 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, and in addition, as communications permit, we will inform our customers when communications become available to tell them what alternatives they have to send their orders to us. Customers will be informed of alternatives by phone or email. If necessary, we will advise our customers to place orders directly with our clearing firm.
2. Order Entry
Currently, our firm enters its retail orders through the clearing firm’s proprietary system. These orders can be entered directly into the system by customers, or by the registered personnel. Through a system of filters and pre-established parameters, orders are either routed to an execution venue for execution. Trade tickets are created through the clearing firm’s proprietary system.
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 phone or facsimile. 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 through the clearing firm’s proprietary system. In the event of an SBD, all transactions will be called into the trade desk who will then contact the clearing firm via phone to execute transactions on the firm’s customer’s behalf. These procedures would be implemented in both an internal and external SBD.
B. Mission Critical Systems Provided by Our Clearing Firm
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.
Rules: FINRA Rules 3510(c)(2) & (g)(1).
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 or at another location. 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.
Rule: FINRA Rule 4370(c)(4).
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 with the other party. We will also employ a call tree so that senior management can reach all employees quickly during an SBD. The call tree includes all staff home and office phone numbers. We have identified persons, noted below, who live near each other and may reach each other in person:
The person to invoke use of the call tree is: Laura Brodbeck
Caller: Laura Brodbeck
Call Recipients: All registered and non-registered representatives
Rule: FINRA Rule 4370(c)(5).
We are currently members of the following SROs: FINRA. We communicate with our regulators using the telephone, e-mail, fax, U.S. 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 with the other party.
Rule: FINRA Rule 4370(c)(9).
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.
Rules: FINRA Rule 4370(c)(7).
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: Fifth Third Bank located 600 Superior Avenue East, MDA6512A, Cleveland, Ohio 44114 (216) 274-5056. If our banks and other lenders are unable to provide the financing, we will seek alternative financing immediately from its owners.
Rules: FINRA Rule 4370(c)(7).
We have contacted our critical counter-parties, such as other broker-dealers or 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 transactions cannot be completed, we will work with our clearing firm or contact those counter-parties directly to make alternative arrangements to complete those transactions as soon as possible.
Rules: FINRA Rule 4370(c)(7).
Our firm is subject to regulation by SEC, FINRA, and state regulatory agencies in those jurisdictions where the Firm is registered. 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, FINRA, 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.
SEC - Chicago Regional Office
Merri Jo Gillette, Regional Director
175 W. Jackson Blvd., Suite 900
Chicago, IL 60604
FINRA District #8 – Chicago
FINRA Liaison Officer
55 West Monroe Street, Suite 2700
Chicago, IL 60603-5052
Fax: (312) 606-0742
Rule: FINRA Rule 4370(c)(8).
The firm has created a Business Continuity Plan (BCP) that provides for the firm to continue client service within a reasonable amount of time, given the scope and severity of a significant business disruption. (SBD).
The BCP anticipates responding to both internal and external SBDs. An internal SBD, such as the loss of our telephone system, affects only the firm. The firm will respond to internal SBDs by rerouting calls to secondary numbers, and/or relocating its primary office to a secondary location, and/or, recovering data from a backup storage media and/or a backup site. The firm expects to recover from an internal SBD within one hour.
An external SBD, such as a power outage or flood, affects multiple businesses and can be local, regional, national, or global. The firm has an office in New York, NY which can be relied upon to handle most Longbow responsibilities. The firm’s response to an external SBD relies more heavily on other organizations, such as the clearing firm and product sponsors. The firm expects to recover from an external SBD within six hours.
In the event a SBD prevents customers from contacting the firm by using the firm’s primary phone number, fax number, or email address, customers may contact the firm by using the following secondary contact information:
Telephone: 800-404-5849 216-856-1205
If a SBD disrupts both the primary and secondary methods of contacting the firm, customers should contact the clearing firm at Pershing LLC:
Telephone: 201-413-2223 866-364-2209
This number is also provided on quarterly statements.
The clearing firm maintains customer accounts and can deliver funds and/or securities. In the event an SBD renders the firm unable to receive customer orders, the firm will instruct the clearing firm and/or product sponsors to provide customers with instructions and assistance on how customers can gain prompt access to their funds and securities. If the SBD disrupts the clearing firm’s systems, customer orders and requests for funds could be delayed during the time period in which the clearing firm restores its operations and resumes accepting customer orders and completing existing orders. The clearing firm expects to resume accepting orders within 48 hours.
While no contingency plan can eliminate all risk of service interruption or temporarily impeded account access, the firm continually assesses and updates its BCP to mitigate all reasonable risk.
This disclosure is subject to modification.
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 December 1st, to modify it for any changes in our operations, structure, business, or location or those of our clearing firm.
Rule: FINRA Rule 4370(b).
I have approved this Business Continuity Plan as reasonably designed to enable our firm to meet its obligations to customers in the event of an SBD.
Rule: FINRA Rule 4370(d).