Disclosure

Terms of Use

LIVEVOL SECURITIES INC WEBSITE DISCLAIMER AND AGREEMENT

Livevol Securities Inc (“Livevol”) prepared the information contained herein. By accessing this website, you agree to the following terms and conditions (herein referred to as the “Agreement”):

The material on this website is for your information only and should not be construed as investment advice or any recommendation of a transaction. Livevol is not soliciting any action based upon it. Specifically, this material is not, and is not to be construed as, an offer to buy or sell or a solicitation of a transaction involving any security or other financial instrument referred to herein. Furthermore, the information on this website is not intended for distribution to, or use or access by, any person in any state or jurisdiction where such distribution, use or access would be contrary to applicable law or regulation or which would subject Livevol to any additional registration or licensing requirements. Similarly, nothing contained herein shall be deemed to constitute a solicitation to open an account with, become a customer of, or engage in any transaction with or through Livevol.

The financial instruments discussed herein may be unsuitable for certain investors, depending upon their specific investment experience and objectives and their financial circumstances. Those accessing this website should make such investigations as are necessary to arrive at an independent evaluation of the merits of the financial instruments discussed herein. In addition, those accessing this website should consult their own legal, tax, accounting and financial advisers regarding the economic benefits and risks of the financial instruments described herein, and the potential legal, regulatory, credit, tax and accounting impact of such financial instruments or transactions therein based upon their individual circumstances. Those accessing this website agree that they will make their own independent determination in effecting or entering into any transaction involving such financial instruments, whether or not effected through Livevol or any of its affiliates.

The information contained herein is based upon information that Livevol considers to be reliable, but Livevol does not guarantee that it is accurate, complete or current and it should not be relied upon as such. The information available on this website is subject to change without prior notice, and Livevol expressly reserves the right to stop maintaining or updating this website or any part hereof without prior notice. With respect to any issuers that might be discussed on this website, Livevol or its affiliates may act as advisers or lenders to, or may provide, may have provided, or may seek to provide investment banking or others services to such issuers. Such affiliates also may hold positions or make markets in or otherwise trade or effect transactions in the financial instruments discussed herein or the securities of the issuers discussed herein.

The materials provided herein are copyrighted by, and belong exclusively to Livevol. They may not be copied, reproduced, republished, posted, transmitted or redistributed in any way, without the prior written permission of Livevol. You may print, download or display one copy of each report herein solely for your personal, non-commercial use provided that the reports are kept intact and include all notes, disclosures and copyright notices. No information herein may be modified or used for any other purpose without the prior written consent of Livevol.

You acknowledge that (i) this website and all information contained herein constitute copyrighted, trade secret and/or proprietary information of substantial value to Livevol, (ii) you receive no proprietary rights whatsoever in or to this website or the information contained herein, and (iii) title and ownership rights in and to this website and the information contained herein and any trademarks, trade names and logos used or displayed herein, and all the rights therein and legal protections with respect thereto, remain exclusively with Livevol. You shall not, and shall not assist any third party to, assert any rights in this website, the information or intellectual property contained, used or displayed herein or any component thereof, or challenge Livevol’s intellectual property or other rights therein.

You may not resell or otherwise transfer or allow the use of any of the information contained in this website (including any research report contained herein), or any part thereof, directly or indirectly, by or for the benefit of, any other person or organization. You agree to treat the information contained herein as proprietary to Livevol and that you will keep such information confidential. You agree to take all steps reasonably necessary (or requested by Livevol) to protect the rights of Livevol herein.

When using a link to a website external to this website, you expressly acknowledge and agree that you are visiting a site which is not affiliated with any Livevol website and is not operated or controlled by neither Livevol, any of its affiliates nor any of their respective directors, members, officers or employees endorses the information provided in such external websites, nor makes any recommendation, representation or warranty nor accepts any liability whatsoever, in respect of the site that you visit or any information provided therein. You access and use these websites at your own risk.

THIS WEBSITE AND ALL INFORMATION CONTAINED HEREIN IS PROVIDED TO YOU ON AN “AS IS” BASIS. NEITHER LIVEVOL, ANY OF ITS AFFILIATES NOR ANY OTHER PARTY MAKES ANY REPRESENTATION OR WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, WITH RESPECT TO THE INFORMATION CONTAINED HEREIN, AND LIVEVOL EXPRESSLY DISCLAIMS ANY AND ALL IMPLIED WARRANTIES OF ORIGINALITY, ACCURACY, COMPLETENESS, MERCHANTABILITY AND FITNESS FOR ANY PARTICULAR PURPOSE. YOU ASSUME THE ENTIRE RISK OF ANY USE YOU MAY MAKE OF THE INFORMATION CONTAINED HEREIN. IN NO EVENT SHALL LIVEVOL, ANY OF ITS AFFILIATES OR ANY OTHER PARTY, BE LIABLE TO YOU OR ANY OTHER PARTY FOR ANY DIRECT OR INDIRECT DAMAGES, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS, LOST SAVINGS OR OTHER INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF THIS AGREEMENT OR YOUR USE OF, OR INABILITY TO USE, THIS WEBSITE, REGARDLESS OF THE FORM OF ACTION, EVEN IF LIVEVOL HAS BEEN ADVISED OF OR OTHERWISE MIGHT HAVE ANTICIPATED THE POSSIBILITY OF SUCH DAMAGES.

If any provision hereof shall for any reason be declared to be void, unenforceable or illegal, the enforceability of this Agreement or any other provision hereof shall not be affected. In addition, the parties agree that such void or illegal provision shall be construed in a manner designed to effectuate its purpose to the fullest extent enforceable under applicable law.

This Agreement shall be governed by and construed in accordance with the laws of the State of California and you hereby consent to the exclusive jurisdiction of, and venue in, any federal or state court of competent jurisdiction in such state.

Notwithstanding any expiration or termination of this Agreement, those rights and obligations regarding confidentiality, proprietary rights and limitations on liability shall remain in full force and effect.

Privacy Policy

Livevol Securities, Inc. and its affiliates (collectively, “Livevol,” “we,” us,” and/or “our”), respects the privacy rights of our users and we are committed to protecting your privacy on our Web site (the “Site”), products and services (collectively, the “Services”). This Privacy Policy is a statement of our guidelines and practices with respect to the collection, use, protection and disclosure of personal information collected through your use of the Services or in your communications with us.

By submitting personal information to Livevol or its affiliates and agents, you agree that we may collect, use and disclose such personal information in accordance with this Privacy Policy and as permitted or required by law. Your use of the Livevol website and services signifies your assent to this Privacy Policy. Further, by using our Services on behalf of an entity or corporation, you are agreeing that you have the right and authority to bind that entity or corporation to the obligations and responsibilities incurred by using our Services.

What information does Livevol collect?

Information You Give Us. Livevol (or in some cases a designated agent acting on Livevol's behalf) receives and stores personally identifiable information that you voluntarily provide through the Services or give us in any other way (including by making it publicly accessible). This information may include your name, address, e-mail address, billing information, etc.

Automatically Collected Information. We also receive and store certain types of information whenever you interact with us or our Services, which is collected passively using various technologies. For example, like many Web sites, we use “cookies,” and we obtain certain types of information when your web browser accesses our Site. Such information cannot presently be used to identify you personally, but if it is associated with other information that you provide, such information would be treated as personally identifiable information. We may disclose non-personally identifiable information in order to describe the Services to current and prospective business partners and to other third parties for other lawful purposes.

E-mail Communications. We may receive confirmation when you open email from Livevol if your computer supports such capabilities. If you do not want to receive email or other mail from us, please contact us at privacy@livevolsecurities.com and we will promptly remove you from our mailing lists.

How does Livevol use your personally identifiable and other information?

We use the personally identifiable information you provide in a manner that is consistent with this Privacy Policy. If you provide personally identifiable information for a certain reason, we may use it in connection with the reason for which it was provided. For instance, if you contact us by email, we will use the personally identifiable information you provide to answer your question or resolve your problem. Also, if you provide personally identifiable information in order to interact with our Services, we will use your personally identifiable information to provide you with access to such Services and to support and monitor your use of such Services. We may also use your personally identifiable information and other information collected through the Services to help us improve the content and functionality of the Services, to customize your experience with our Services, and to better understand our customers and to improve the Services. We and our affiliates may use this information to contact you in the future to tell you about services or offers that we believe will be of interest to you. If we do so, each communication we send you will contain instructions permitting you to “opt-out” of receiving future communications. In addition, if at any time you wish not to receive any future communications or you wish to have your name deleted from our mailing lists, please contact us as indicated above.

If we intend on using any personally identifiable information in any manner that is not consistent with this Privacy Policy, you will be informed of such anticipated use prior to or at the time at which the personally identifiable information is collected.

Sharing of Personal Identifiable Information

Third Party Vendors or Service Providers. We use other companies and individuals to perform certain functions on our behalf. Examples include, without limitation, providing market data feeds and technology services that help power our Services, credit checks, brokerage services, and trade clearing services. When we use other companies or individuals to perform a function on our behalf, we only provide them with the information that they need to perform their specific function.

Business Transfers. As we continue to develop our business, we might sell or buy subsidiaries or business units. In such transactions, personally identifiable customer information generally is one of the transferred business assets but remains subject to the promises made in any pre-existing Privacy Notice (unless the customer consents otherwise). In the event that Livevol or substantially all of its assets are acquired, personally identifiable customer information will be one of the transferred assets.

Protection of Livevol and Others. We release account and other personally identifiable information when we believe release is appropriate to comply with the law, enforce the terms of use on our Services, or protect the rights, property, or safety of Livevol employees, our users, or others. This includes exchanging personally identifiable information with other companies and organizations for fraud protection and credit risk reduction. This does not include selling, renting, sharing, or otherwise disclosing personally identifiable information from customers for commercial purposes in violation of the commitments set forth in this Privacy Notice.

With Your Consent. Other than as set out above, you will receive notice when information about you might go to third parties, and you will have an opportunity to choose not to share the personally identifiable information. If you provided such consent at the time you provided your personally identifiable information to us, we may share your personally identifiable information with select third parties who provide services that we believe may be of interest to you (“Third Party Providers”). You may instruct us at any time not to share your personal information with such Third-Party Providers by e-mailing us at privacy@livevolsecurities.com. Please note that this process may take up to thirty (30) days.

Security of Your Information

We utilize reasonable and appropriate protections and procedural safeguards to ensure that personal information in our care is not misused or accessed without authorization. Personal information is stored on our own platforms or on the platforms of our service providers, with access restricted to those employees or contractors who have a need for such access to perform a legitimate business function relating to the services or for maintenance, internal security or related issues. To help us protect your privacy, you should maintain the secrecy of any login ID and password you may have set up or received in connection with your use of our Services.

Use of Cookies

What are Cookies? Cookies are small text files placed on your hard drive by a Web site when you visit, which can be used to enhance your experience, such as by storing information about your preferences. Such information may include the pages visited on our Site, the date and the time of such visits, or the Web sites you visited immediately before and after visiting this Site. Livevol or a third-party advertising company acting on Livevol's behalf may also use cookies in order to manage and display advertisements that you might see on this Site or other Web sites. Information about your visits to, and activity on, this Site, as well as the number of times you have viewed an advertisement, is used to display on your computer screen customized advertisements that may be of particular interest to you.

Prevention of Cookies. To prevent cookies, you can opt out through your internet browser, doing so on each browser and on each machine or device you use to surf the Web. The Help portion of the toolbar on most browsers will tell you how to prevent your browser from accepting new cookies, how to have the browser notify you when you receive a new cookie, or how to disable cookies altogether. Additionally, you can disable or delete similar data used by browser add-ons, such as Flash cookies, by changing add-on settings or visiting the Web site of its manufacturer.

Transfer of Personal Information to Other Countries

Some of the uses and disclosures mentioned in this privacy policy may involve the transfer of your personally identifiable information to various countries around the world. By submitting your personal information via our Services, you consent to such transfers.

Links to Third-Party Web sites

Livevol may provide links to third-party Web sites. The policies and procedures we described here do not apply to the third-party sites. While we try to link only to sites that share our high standards and respect for privacy, we do not endorse such sites and we are not responsible for the content or the privacy practices of any third party websites. For this reason, we encourage you to review the privacy policies on those Web sites before providing any of your personal information.

Accessing and Updating Your Personal Information

To access, review, update or delete personal information collected about you via this Site, please e-mail privacy@livevolsecurities.com. All requests must include the following information: first name, last name and e-mail address. While we will make every reasonable effort to accommodate your request, we also reserve the right to impose certain restrictions and requirements on such access requests, if allowed or required by applicable laws.

International Users

If you reside outside the U.S., your information is transferred to the U.S. to be processed and stored under U.S. privacy standards. By using the Service and providing information to us, you consent to such transfer to, and processing in, the U.S.

Other Options

You can always choose not to provide information, even though it could mean that you will be unable to access or we will be unable to provide you with many of our Services. If you do not want to receive e-mail or other mail from us, please contact us at privacy@livevolsecurities.com to be promptly removed from our lists.

Children

Individuals of age 13-17 may not visit this Site or use our Services unless they do so with the involvement and consent of a parent or legal guardian. Individuals under the age of 13 are not permitted to access our Services. We do not intentionally seek to sell anything to, influence, collect information from or otherwise address individuals 13 years of age and younger, nor do we knowingly collect personal information from children under 13 through any of our Services.

Modifications

We reserve the right to modify this Privacy Policy at any time without notice. Please check this page periodically for changes. Your continued use of this Site and our Services following the posting of changes to this Privacy Policy constitutes acceptance of those changes.

Contact Us

If you have any questions or concerns about this Privacy Policy or if you believe that we have acted contrary to this Privacy Policy, please contact us at privacy@livevolsecurities.com.

Order Routing Report

Livevol Securities routes all orders exclusively through Interactive Brokers. The United States Securities and Exchange Commission requires all brokerage firms to make publicly available quarterly reports describing their order routing practices.
Please click on the link below to view the reports:
https://www.interactivebrokers.com/en/index.php?f=563

Business Continuity Plan

Introduction

This is the plan for the business continuity and recovery of Livevol Securities Inc., (“LVS” or “the Firm”) in the aftermath of a disaster in order to ensure that the Firm will recover to the extent it is able to continue its business operations and meet its existing obligations to its customers.

Livevol Securities operates from one office at 220 Montgomery Street, suite 360, CA 94104, which can be reached by foot, bicycle, personal automobile, mass transportation (train and bus), and taxi.

This Business Continuity Plan is developed based on the size and needs of the Firm, but will address, at a minimum, each of the following areas:

  • Person Responsible for the Business Continuity Plan;
  • Data back-up and recovery (hard copy and electronic);
  • Mission critical systems;
  • Financial and operational assessments;
  • Alternate communications between customers and the Firm;
  • Alternate communications between the Firm and its employees;
  • Alternate physical location of employees;
  • Critical business constituents, banks and counter-parties;
  • Regulatory reporting;
  • Communications with regulators; and
  • How the Firm will assure customers prompt access to their funds and securities in the event that the Firm determines that it is unable to continue its business.

A copy of this Business Continuity Plan will be maintained in a file in the office, as well as electronically on the network off-site data storage location. An electronic copy of our plan is located on our hosted archive servers at Venyu.

Emergency Contact Persons

Livevol Securities emergency contact person for its Business Continuity Plan (“BCP”) is:

    Luis Alvira
    (415) 200-4536 x112
    Luis.alvira@livevolsecurities.com
                

This information will be promptly updated in the event of a material change, including changes to the designation of the two emergency contact persons, via FINRA’s Contact System (FCS). Livevol Securities Executive Representative (Luis Alvira) or designee will review and update, when necessary, the emergency contact information on an annual basis (by the 17th business day following the close of the preceding calendar year).

Rule: NASD Rule 3520.

Firm Policy

Livevol Securities 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 types of SBDs, internal and external. Internal SBDs affect only Livevol Securities ability to communicate and do business, such as a fire in our office or office 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 Interactive Brokers, LLC (“IB”), our clearing firm, and Egnyte, Inc. (“Egnyte”), our data hosting and storage facility provider.

B. Approval and Execution Authority

Luis Alvira is responsible for establishing the BCP, reviewing the BCP on an annual basis, updating the BCP annually (or as changes occur), approving the BCP in writing, and educating the Firm’s employees regarding the business continuity and disaster recovery procedures of the Firm. Luis Alvira , Chief Compliance Officer (“CCO”) of the Firm, has the authority to execute this BCP.

C. Plan Location and Access

Livevol Securities will maintain for inspection copies of its BCP and the annual reviews, and the changes that have been made to it. An electronic copy of our BCP is located on our hosted servers at Venyu

Business Description

Livevol Securities conducts business as an introducing broker on a fully-disclosed basis and does not perform any type of clearing function for itself or others. All transactions are sent to our clearing firm, which executes 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. We do not engage in any private placements, or futures.

Our clearing firm is IB. In the event of a business disruption and Livevol Securities is unable to perform its duties, customers will be instructed to contact IB at (312) 542-6800. (Please refer to IB’s “Business Continuity Plan Disclosure,” dated April 23, 2009)

Office Locations

Livevol Securities main and only office is located at 220 Montgomery Street, suite 360, CA 94104. Its main telephone number is (415) 200-4536.

Alternative Physical Location(s) of Employees

In the event of an internal SBD, Livevol Securities physical alternative location for its employees will be their homes. Employees will work at home using their home computers and telephones. They will document all transactions and communications on their home computers and save to the computing and data storage provider, to the extent it is available or to the appropriate Firm system when it is accessible.

Rule: NASD Rule 3510(c)(6).

Customers’ Access to Funds and Securities

Our firm does not maintain custody of customers’ funds or securities, which are maintained at our clearing firm. 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 at www.Livevolsecurities.com , our firm will post on our Web site that customers may access their funds and securities. 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: NASD Rule 3510(a); Securities Exchange Act Rule 15c3-1; 15 U.S.C. 78eee (2003).

Data Back-Up and Recovery (Hard Copy and Electronic)

Livevol Securities maintains its primary hard copy books and records at its home office location, 220 Montgomery St., Suite 360, San Francisco, CA 94104. Its electronic records are located at Venyu datacenter in Shreveport, LA, and its built to Department of Defense anti-terrorism force protection codes making it one of the most secure commercial data centers in the country. Full back ups occur daily. Luis Alvira, Livevol Securities CCO, along with Livevol Securities IT staff, is responsible for the maintenance of these books and records.

In order to have an effective BCP, the Firm will maintain, at its home office and backed up at the alternate location, the following information:

  • Copy of the BCP;
  • Copies of corporate documents;
  • Employee list with home addresses, email addresses and phone numbers;
  • Vendor list with contact names and phone numbers;
  • List of necessary FINRA personnel and contact information (district and national);
  • Securities and Exchange Commission (“SEC”) contact number and addresses (regional and national);
  • Insurance Contact; and Bank Contact Information

Livevol Securities utilizes Venyu Solutions as its primary computing and data storage provider. Venyu has data centers throughout the country and the main hosting site in Baton Rouge, LA also contains a physical business recovery center featuring 93 workspaces. Our data center located in Shreveport-Bossier is built to Department of Defense anti-terrorism force protection codes and is one of the most physically secure commercial data centers in the country. Both are commercial grade which is ideal for climate controls, fire suppression, redundant power, and telecommunication options. Venyu delivers remote backup and redundant hosting services to fulfill the requirements of FINRA related to business continuity planning and readiness. Venyu’s solutions is compliant with FINRA (NASD 3510) requiring members’ business continuity and contingency plans to include procedures to satisfy obligations to clients in the event of an emergency or outage.

Rule: NASD Rule 3510(c)(1).

Financial and Operational Assessments

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, or facsimile. In addition, we will retrieve our key activity records as described in the sections above.

Rules: NASD Rules 3510(c)(3) & (f)(2).

B. Financial and Credit Risk

In the event of a significant business disruption, the Firm will determine the value and liquidity of its investments and assets and decide whether or not it is able to remain in compliance with net capital requirements. If the Firm determines that it may not be able to meet its obligations, additional financing will be obtained through principal contributions in order to fulfill obligations to the Firm’s customers. If unable to maintain capital sufficiency, the Firm will file appropriate notices with regulators and immediately take the steps that are outlined in SEC Rule 17a-11. This would include giving notice of deficiency that same day to the principal office of the SEC in Washington, D.C., the regional or district office of the SEC, and FINRA. This notice shall be given by email or fax.

Rules: NASD Rules 3510(c)(3), (c)(8) & (f)(2).

Mission Critical Systems

Our Firm’s “mission critical systems” are those that ensure prompt and accurate processing of securities transactions. More specifically, these systems include:

  • Network Infrastructure devices like Load Balancers, Routers, Switches, and Firewalls;
  • Internet Front-End Servers like Web, and Application servers;
  • Backend servers like Portfolio Management Systems and Databases;
  • Corporate servers like E-mail, File, Voice, Backup, DNS, and Directory Services and
  • Private Data lines, and Market Data feeds.
  • Sterling Trading Platform
  • Account Maintenance systems by the clearing firms

We have primary responsibility for establishing and maintaining our business relationships with our customers and have sole responsibility for our mission critical functions. Our clearing firm provides order processing, execution, 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. 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 remote sites. 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 and it has confirmed that it tests its back-up arrangements periodically.

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 2-6 hours.

Rules: NASD Rules 3510(c) & (f)(1).

Order Taking

Currently, our firm receives orders from customers via trading platform/telephone /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, 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 message email orLIvevolsecurities website, or on a phone answering machine. If necessary, we will advise our customers to place orders directly with our clearing firm.

Order Entry

Currently, our firm enters orders by recording them electronically and sending them to our clearing firm electronically or telephonically.

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, fax and e-mail. 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.

Order Execution

We currently execute orders by sending through the trading platform, orders are directly routed to the desired destination for execution. In the event of an internal SBD, we would call the clearing firm directly via cell phone or e-mail from a remote location. In the event of an external SBD, we would contact the clearing firm at locations provided in the BCP

Alternate Communications Between the Firm and Customers, Employees, and Regulators

A. Customers

Livevol Securities BCP is designed to provide a consistent communication framework to plan for and/or respond to any crisis situation that may disrupt the Firm’s operations. Its purpose is to support the response to any crisis that may occur by providing timely, accurate information to customers.

In the event of a significant business disruption that disables telephone service or forces employees out of the primary location, Livevol Securities will remotely forward office phones to an alternative phone number. By doing so, customers can reach Livevol Securities by dialing the existing office telephone number.

In the event of a disruption, the Firm will determine which means of communication are still available and use the means closest in speed and form (written or oral) to the means used in the past to communicate with customers. For example, if the Firm has communicated with a party by e-mail but Internet access is unavailable, the customer will be called on the telephone.

If the Firm has customer email addresses, an email will be sent to each client that may have pending securities business with the Firm. This will give customers the opportunity to contact the Firm, even if phone service is interrupted. Firm representatives have cell phone and internet/email capabilities away from the office. Therefore, representatives of the Firm will be reachable even if away from the office.

Any disruption to the Firm’s service will also be posted to its website, www.livevolsecurities.com.com, thus giving customers detailed information regarding the emergency situation and how to contact someone associated with the Firm. This website is also a good forum for communicating further emergency instructions to Livevol Securities employees or any other persons or organizations trying to contact the firm. Livevol Securities BCP Disclosure Statement also includes the language that customers may access Firm information during an emergency situation or SBD by accessing www.livevolsecuritis.com.

Rule: NASD Rule 3510(c)(4).

Employees

Livevol Securities BCP is designed to provide a consistent communication framework to plan for and/or respond to any crisis situation that may disrupt the Firm’s operations. Its purpose is to support the response to any crisis that may occur by providing timely, accurate information to its employees. Should it be necessary to contact employees, senior managers will use the fastest, most efficient means available at the time. Communication may consist of telephone, email, fax, website, or in person. In the event of an SBD, we will assess which means of communication are available for use and will employ the form of communication that will be the quickest, most effective way to reach that employee.

The Firm will maintain a list of employee names, addresses and all contact phone numbers and email addresses. This list will be maintained at the home office and stored electronically at the off-site storage location.

To aid in the continuity and recovery process, each employee will be supplied with a list of important phone numbers and a secure list of computer log-ins and passwords.

Should there be a significant business disruption at the home office, employees will be instructed to work from home.

We will also employ a call tree so that senior management can reach all employees quickly during a 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 will be Luis Alvira.

Caller Call Recipients
Luis Alvira
Firm Management & Support
Luis Alvira
Hugh Skinner
Trading & Sales
Hugh Skinner
Hugh Skinner
Luis Alvira

Rule: NASD Rule 3510(c)(5).

C. Regulators

Livevol Securities is regulated by FINRA, the SEC, and the California Department of Corporations Securities Regulation Division, along with additional states. Reports are currently filed electronically. In the event of a SBD, the Firm will contact regulatory authorities and determine what methods of reporting are available. If the Firm cannot contact authorities, regulatory reports, such as FOCUS reports, will be filed by the speediest method available that is closest in form to the previous filing method. If the internet is not available, the Firm will file reports via overnight delivery service, US mail or fax

Rule: NASD Rule 3510(c)(8).

D. Communications with Regulators

Livevol Securities will maintain a list of assigned examiners and other contacts with FINRA and the SEC on the district and national level, and the California Department of Corporations Securities Regulation Division, including addresses, phone numbers and, if available, email addresses. This will allow the Firm to communicate with regulators in the event of a SBD. Communication with regulators may be through the telephone, fax, email, US mail and overnight delivery services. The Firm is located in San Francisco, CA, which is where the FINRA district office is located. If necessary, the principals of the Firm can access their FINRA district personnel and SEC regional personnel in person.

    FINRA District Office – District 1.
    Brad Gaedje (415) 217-1151
    Bradley.Gaedje@finra.org
    One Montgomery Street, Suite 2100
    San Francisco, CA 94104
    (415) 217-1100
    Fax: (415) 956-1931

    FINRA National Office- Washington, DC
    1735 K Street, NW
    Washington, DC  20006-1500
    (202) 728-8000
    Fax: (301) 590-6500

    FINRA National Office- Rockville, MD
    9509 Key West Avenue
    Rockville, MD  20850
     (301) 590-6500

    SEC District Office
    San Francisco District Office

    Helane Morrison, District Administrator
    44 Montgomery Street, Suite 2600
    San Francisco, CA 94104
    (415) 705-2500
    e-mail: sanfrancisco@sec.gov

    SEC – Washington, DC
    SEC Headquarters
    100 F Street, NE
    Washington, DC 20549
    Office of Investor Education and Assistance
    (202) 551-6551
    e-mail: help@sec.gov

    California Department of Corporations – Securities Regulation Division
    1515 K Street, Suite 200
    Sacramento, CA 95814
    Preston DuFauchard
    (916) 445-7205 
    Fax: (916) 445-7975 
    www.corp.ca.gov
                

California is the home state of Livevol Securities. State contact information (address, phone numbers, website and email address) may be found at www.nasaa.org.

Rule: NASD Rule 3510(c)(9).

Critical Business Constituents, Banks, and Counter-Parties

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 an 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 vendors are:

Rule: NASD Rule 3510(c)(7).

Vendor Name Phone
Activ Financial Systems, Inc Sujata Parekh (312) 578-9297
Global Relay Reggie Lal (866) 484-6630
Instinet Kevin Shea (312) 368-7557
ITG Derivatives LLC Patrick Reed (312) 935-0137
Knight Direct Robert Frain (312) 553-8311
Livevol Inc Stefan Choy (415) 200-5436
Sterling Trader Jim Novatti (312) 346-9600
Venyu None (866) 768-3698
Newedge Frank Russo (646) 557-8441
Lek Securities Mitchell King (212) 509-3200
Susquehanna Stephen Kennedy (610) 747-2340
IRIS Patrick Nilles (480) 499-5206
Interactive Brokers John Hollwedel (866) 694-2757
EZX Paul Savin (908) 376-1447
PDQ Rob Jacobs (224) 521-2463
Orbis Scott Chung (201) 217-9154
UBS Chris Siclare (212) 713-2727

Rule: NASD Rule 3510(c)(7).

B. Banks

Livevol Securities does not require financing on a daily basis to function. However, the Firm has contacted its primary bank to determine if they can continue to provide the financing that we will need in light of an internal or external SBD. The bank maintaining our operating account is: 345 Montgomery St, San Francisco, CA 94104. The Livevol Securities Proprietary Account of Introducing Brokers/Dealers (PAIB account) is housed at IB. If our bank is unable to provide the financing, we will seek alternative financing immediately through other established banking relationships such as Morgan Stanley.

Rule: NASD Rule 3510(c)(7).

C. Counter-Parties

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 an 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: NASD Rules 3510(a) &(c)(7).

Regulatory Reporting

Our Firm is subject to regulation by the FINRA. We now file reports with our regulators electronically using fax, email, and the internet. In the event of a 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.

Rule: NASD Rule 3510(c)(8).

Widespread Health Emergencies

A widespread pandemic or any biologically based threat could have significant impact on Firm’s ability to continue conducting a business. This section outlines the steps Firm has taken and will take in the event of a widespread pandemic.

A. Business constituents
  • Document government resources for information about a pending pandemic;
  • Identify and document an alternative firm or firms to handle the Firm’s business for extended periods of time;
  • Identify and document medical resources to assist employees, including administering vaccinations or other medications;
  • Stock antibacterial and other hygiene products for use by employees;
  • Identify employees that can telecommute and establish a list of those employees and what computers and technology will be necessary.
B. Action if a Pandemic Occurs

The following procedures will be followed in the event of a threatened health emergency.

  • Luis Alvira and head of Hugh Skinner will determine the potential seriousness of the threat and what action to be taken as the threat escalates.
  • Notify employees of:
    • available vaccinations or other medication and whether they are mandated
    • necessary conduct such as avoiding personal contact such as handshaking
    • access to antibacterial or other hygiene products to reduce infections and transmission of communicable diseases
    • requirement to stay home and telecommute
    • transfer of business/functions to other firms
    • contact list of key personnel
  • Restrict access to Firm by outsiders (such as vendors, business partners, etc.).
  • Luis Alvira will meet or communicate regularly to determine next steps to be taken.

Disclosure of Business Continuity Plan

We provide in writing a BCP disclosure statement to customers at account opening and upon request. We also intend mail it to customers upon request. Our BCP disclosure statement is attached.

Rule: NASD Rule 3510(e).

Updates and Annual Review

Our Firm will update this BCP whenever there is 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, to modify it for any changes in our operations, structure, business, or location or to those of our clearing firm.

Rule: NASD Rule 3510(b).

Senior Manager Approval

The below signature provides senior management approval of this BCP as reasonably designed to enable Livevol Securities to meet its obligations in the event of a SBD.

Livevol Securities hereby certifies that the communications and operational systems to be employed to conduct business with customers and the plans and procedures to be employed by the Firm are adequate and provide reasonably for business continuity with respect to each area set forth in Rule 3.023(a)(2)(F)(xii), including:

  • System capacity to handle the anticipated level of usage;
  • Contingency plans in the event of systems or other technological or communications problems or failures that may impede customer usage or Firm order entry or execution;
  • System redundancies;
  • Disaster recovery plans;
  • System security;
  • Disclosures to be made to potential or existing customers who may use such systems; and
  • Supervisory or customer protection measures that may apply to customer use of, or access to, such systems.

Rule: NASD Rule 3510(d).

Margin

Day Trading And Margin Requirements

You may be deemed a “Pattern Day Trader” based on the following means:

  • If you execute four (4) or more day trades -opening and then closing a position in the same stock or option contract on the same day — within a five (5) business day period.
  • If you state on the new account application form “I do intend to use the account for day-trading purposes”.
  • If you advise the firm in writing that you intend to day trade.

The minimum equity requirement for a pattern day trading account is $25,000. Day trading activity of any kind is not permitted in a margin account that starts the trading day with less than $25,000 in equity.

Pursuant to NASD Rule 2520(f)(8)(B), day trading accounts and pattern day trading accounts must maintain $25,000 in equity at all times. Additionally, trading activity in the account is limited by the amount of account’s “day-trading buying power” as that term is defined in the rule. For additional information and or a copy of the rule, please contact Livevol Securities Inc. An on-line version of FINRA rules may also be viewed on the FINRA web site at www.finra.org.

If you are a “Pattern Day Trader” and are unable to deposit funds and/or securities to raise your account equity to $25,000 or more, you must discontinue day trading immediately.

If you no longer intend to day trade, but would like to maintain your account as a margin account, notify the firm in writing, signed by all account holders and we will reinstate your account as a non-day trading margin account.

If you would like to continue to day trade with “Settled Funds”, notify the firm in writing, signed by all account holders, that you would like your account to be changed to a cash account. If you change your account to a cash account, you need to be aware of the following:

  • If you choose to change to a cash account, you must remain a cash account for ninety (90) days. After 90 days if you would like your account to be changed back to a margin account, you must complete a new margin agreement and submit for approval.
  • Cash accounts may only day trade with “Settled Funds” — this means that if you buy and sell the same security on the same day, you will be unable to use the sales proceeds until the settlement date for the sell transaction. Settlement is one (1) business day after trade date for options and three (3) business days for equities.
  • Cash accounts that day trade are required to maintain $25,000 in account equity.
  • Cash accounts may not sell stocks short.
  • Cash accounts will not be approved for spreads, straddles or uncovered option transactions of any kind.
  • The firm will accept a written request to switch your margin account to a cash account if you do not have a margin debit balance, or hold a spread, straddle or uncovered option position in the account.

Day Trading Risk Disclosure Statement

You should consider the following points before engaging in a day-trading strategy. For purposes of this notice, a “day-trading strategy” means an overall trading strategy characterized by the regular transmission by a customer of intra-day orders to effect both purchase and sale transactions in the same security or securities.

Day trading can be extremely risky. Day trading generally is not appropriate for someone of limited resources and limited investment or trading experience and low risk tolerance. You should be prepared to lose all of the funds that you use for day trading. In particular, you should not fund day trading activities with retirement savings, student loans, second mortgages, emergency funds, funds set aside for purposes such as education or home ownership, or funds required to meet your living expenses. Further, certain evidence indicates that an investment less than $50,000 will significantly impair the ability of a day trader to make a profit. Of course, an investment of $50,000 or more will in no way guarantee success.

Be cautious of claims of large profits from day trading. You should be wary of advertisements or other statements that emphasize the potential for large profits in day trading. Day trading can also lead to large and immediate financial losses.

Day trading requires knowledge of securities markets. Day trading requires in-depth knowledge of the securities markets and trading techniques and strategies. In attempting to profit through day trading, you must compete with professional, licensed traders employed by securities firms. You should have appropriate experience before engaging in day trading.

Day trading requires knowledge of a firm’s operations. You should be familiar with a securities firm’s business practices, including the operation of the firm’s order execution systems and procedures. Under certain market conditions, you may find it difficult or impossible to liquidate a position quickly at a reasonable price. This can occur, for example, when the market for a stock suddenly drops, or if trading is halted due to recent news events or unusual trading activity. The more volatile a stock is, the greater the likelihood that problems may be encountered in executing a transaction. In addition to normal market risks, you may experience losses due to system failures.

Day trading will generate substantial commissions, even if the per trade cost is low. Day trading involves aggressive trading, and generally you will pay commissions on each trade. The total daily commissions that you pay on your trades will add to your losses or significantly reduce your earnings. For instance, assuming that a trade costs $16 and an average of 29 transactions are conducted per day, an investor would need to generate an annual profit of $111,360 just to cover commission expenses.

Day trading on margin or short selling may result in losses beyond your initial investment. When you day trade with funds borrowed from a firm or someone else, you can lose more than the funds you originally placed at risk. A decline in the value of the securities that are purchased may require you to provide additional funds to the firm to avoid the forced sale of those securities or other securities in your account. Short selling as part of your day-trading strategy also may lead to extraordinary losses, because you may have to purchase a stock at a very high price in order to cover a short position.

Potential Registration Requirements. Persons providing investment advice for others or managing securities accounts for others may need to register as either an “Investment Advisor” under the Investment Advisors Act of 1940 or as a “Broker” or “Dealer” under the Securities Exchange Act of 1934. Such activities may also trigger state registration requirements.

Margin Disclosure Statement

Pursuant to FINRA rules, Livevol Securities Inc is furnishing this document to you to provide some basic facts about purchasing securities on margin, and to alert you to the risks involved with trading securities in a margin account. Before trading stocks in a margin account, you should carefully review the margin agreement provided by your firm. Consult your firm regarding any questions or concerns you may have with your margin accounts.

When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from your brokerage firm. If you choose to borrow funds from your firm, you will open a margin account with the firm. The securities purchased are the firm’s collateral for the loan to you. If the securities in your account decline in value, so does the value of the collateral supporting your loan, and, as a result, the firm can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts held with the member, in order to maintain the required equity in the account.

It is important that you fully understand the risks involved in trading securities on margin. These risks include the following:

  • You can lose more funds than you deposit in the margin account. A decline in the value of securities that are purchased on margin may require you to provide additional funds to the firm that has made the loan to avoid the forced sale of those securities or other securities or assets in your account(s).
  • The firm can force the sale of securities or other assets in your account(s). If the equity in your account falls below the maintenance margin requirements or the firm’s higher “house” requirements, the firm can sell the securities or other assets in any of your accounts held at the firm to cover the margin deficiency. You also will be responsible for any short fall in the account after such a sale.
  • The firm can sell your securities or other assets without contacting you. Some investors mistakenly believe that a firm must contact them for a margin call to be valid, and that the firm cannot liquidate securities or other assets in their accounts to meet the call unless the firm has contacted them first. This is not the case. Most firms will attempts to notify their customers of margin call, but they are not required to do so. However, even if a firm has contacted a customer and provided a specific date by which the customer can meet a margin call, the firm can still take necessary steps to protect its financial interests, including immediately selling the securities without notice to customers.
  • You are not entitled to choose which securities or other assets in your account(s) are liquidated or sold to meet a margin call. Because the securities are collateral for the margin loan, the firm has the right to decide which security to sell in order to protect its interests.
  • The firm can increase its “house” maintenance margin requirements at any time and is not required to provide you advance written notice. These changes in firm policy often take effect immediately and may result in the issuance of a maintenance margin call. Your failure to satisfy the call may cause the member to liquidate or sell securities in your account(s).
  • You are not entitled to an extension of time on a margin call. While an extension of time to meet margin requirements may be available to customers under certain conditions, a customer does not have a right to an extension.

Market Data

Information providers, to include securities markets and exchanges that make market data available, or other entities that provide market data, have proprietary interests in the market data that they make available.

Stock quotes displayed by Livevol are provided by outside vendors, and Livevol does not guarantee the accuracy of any quote information you may receive. The information providers do not guarantee the accuracy, timeliness or completeness of any market data they disseminate and you may not hold Livevol responsible for an injury associated with any trade made in reliance upon such quote information.

You acknowledge that the market data you receive through Livevol is the property of the information providers and that you may use this market data only for your personal use and that you may not re-transmit this data for any business purposes.

Customer Identification Program Notice

Information Required From Individuals:

  • The identity and address of the customer (Post Office boxes are not acceptable)
  • Date of Birth
  • Social Security number or Taxpayer Identification number
  • Copy of valid government issued photo identification such as a driver’s license or passport (passport required for all non-resident aliens)
  • Investment experience and objective
  • Net worth, liquid net worth and annual income
  • Citizenship status (e.g. U.S. citizen, resident alien with nationality, non-resident alien
  • Occupation, employer, employer’s address and nature of the customer’s employment/business
  • The source of the customer’s assets

Additional information may be required from Companies, Trusts, Partnerships or other Legal Entities

When a prospective customer fails to provide any of the required information, Livevol will deny the application and not open the account.

Important Information about Procedures for Opening a New Account

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.

What this means for you

When you open account, we will ask for your name, address, date of birth and identification number. The identification for a U.S. citizen would be a taxpayer identification number. For a non- U.S. citizen the identification number would include the taxpayer identification number, passport number, and country of issuance, alien identification number, or government-issued identification showing nationality, residence, and a photograph of you. We may also ask to see your driver’s license or other identifying documents.

A corporation, partnership, trust or other legal entity may need to provide other information, such as its principal place of business, local office, employer identification number, certified articles of incorporation, government-issued business license, a partnership agreement or a trust agreement.

Stock Market Volatility Disclosure High Volume, High Volatility and Trading Halts

Recent events show that the way some stocks are traded is changing dramatically, and the change in trading methods may affect price volatility and cause increased trading volume. This price volatility and increased volume present new hazards to investors, whether trading occurs on-line or otherwise.

Delays

A fast market is a high-volume trading session marked by extreme price fluctuations and order imbalances resulting from numerous investors entering buy or sell orders for the same security simultaneously. Because of these imbalances, wide price variances in short periods of time are common. On any given day, fast markets can affect a particular security, groups of securities or the market as a whole. Fast markets can be caused by material news announcements, market developments, and sometimes trading halts in less volatile securities. The ability to execute orders in a timely manner in fast market conditions may be severely limited and order execution may be delayed significantly. Furthermore, Market orders entered in fast market conditions may be executed at prices that are significantly different from the prices quoted at the time.

Types of Orders

“Market” orders are orders that firms are required to execute fully and promptly without regard to price. While a customer may receive a prompt execution of a market order, the execution may be at a price significantly different from the current quoted price of that security.

“Limit” orders are orders that will only be executed at a specified price or better. Though the customer receives price protection, there is the possibility the order will not be executed at all.

Customers who place market orders for initial public offering (IPO) securities trading in the secondary market, particularly those trading at a premium to their offering (IPO) price, risk receiving an execution substantially away from the market price at the time they place the order. This risk may be significantly reduced by including a cap (or floor) with the order above (or below) which the order is not to be executed. This can be done by placing a Limit order.

Access

Customers may suffer market losses during periods of volatility in the price and volume of a particular stock when systems problems result in the inability to place buy or sell orders. Customers trading on-line may have difficulty accessing their accounts due to high Internet traffic or because of systems capacity limitations. Customers trading through representatives of on-line firms when on-line trading has been disabled or is not available because of systems limitations may have difficulty reaching account representatives on the telephone during periods of high volume.

Margin

Livevol may raise margin requirements for volatile stocks. The rationale for raising maintenance margin is to help ensure that the equity in a customer’s margin account is sufficient to cover large changes in the price of a stock. The Firm will evaluate stocks for more stringent maintenance margin requirements by examining price fluctuations, market capitalization and volatility. The firm may also prohibit the use of margin to purchase certain securities. Some securities may be designated as “not marginable”, thus requiring customers to purchase the securities with 100% initial margin, allowing payment to be made within three (3) days of settlement.

Trading Halts

Trading may be halted temporarily for a single issue of securities or for all securities listed on Nasdaq or on an exchange (a circuit breaker halt). All trading in a halted security must cease immediately. No transactions in a halted security may be effected directly or indirectly until the halt has ended. During trading halts that will be lifted so as to allow trading to resume on the same trading day, pending and new customer orders will be forwarded to the appropriate market for execution upon resumption of trading, unless the customer indicates otherwise. During trading halts that close the market for the remainder of the trading day, pending and new customer orders will be handled as follows:

  • Orders that are pending at the time of the halt and new orders received during the halt will be treated as “Good Till Cancelled” orders and held for execution at the reopening of the next trading session, unless the customer indicates otherwise.
  • “At the Close” orders pending at the time trading is halted will be treated as cancelled orders.
  • New orders related to closing prices will not be accepted or forwarded to a market during a trading halt.

SIPC Protection

Livevol Securities is a member of FINRA and SIPC.

This account protection does not cover the market risks associated with investing.

An explanatory brochure is available at http://www.sipc.org

This is not an offer or solicitation for brokerage services, investment advisory services, or other products or services in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the securities laws or other local laws and regulations of that jurisdiction. All investments involve risk, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Options involve risk and are not suitable for all investors. System response and access times may vary due to market conditions, system performance and other factors. For more information, read «Characteristics and Risks of Standardized Options». For a copy visit http://www.theocc.com/about/publications/character-risks.jsp before investing in options. Electronic trading poses unique risk to investors. Margin trading involves incurring interest expense and risks, including the potential to lose more than invested, or the need to deposit additional funds or collateral. Please review our margin disclosure statement for information on our lending policies, interest charges, and risks associated with margin account.