1. SECURITIES INVESTOR PROTECTION CORPORATION
Themis Trading LLC (“Themis”) is a member of the Securities Investor Protection Corporation (“SIPC”) and is required to advise its customers in writing about how to obtain SIPC information. Information can obtained from the following locations.
Telephone: (202) 371-8300
Fax: (202) 371-6728
Address: Securities Investor Protection Corporation
805 15th Street, N.W., Suite 800
Washington, DC 20005-2215
2. CUSTOMER INDENTIFICATION PROGRAM
As a FINRA member, Themis is required to obtain certain customer identification information before opening new accounts. In connection with this requirement below please find a web link to FINRA’s Customer Identification Program Notice
Additionally, Themis may also obtain information about its clients from other sources, including the SEC’s Investment Advisor Public Disclosure website.
3. FINRA BROKERCHECK
In connection with FINRA Rule 2267 we remind you that you may access FINRA BrokerCheck at www.FINRA.org/brokercheck in order to review public disclosures of brokerage firms. Additionally, the related FINRA BrokerCheck Hotline is (800) 289-9999.
4. BUSINESS CONTINUITY PLAN (“BCP”) DISCLOSURE STATEMENT
Themis has developed a BCP 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 BCP.
Contacting Us – If after a significant business disruption you cannot contact us as you usually do via phone, Bloomberg, email, FIX connections, or instant messaging, you should call our emergency contact persons via their cell phones 201-787-9241 or 973-615-8880. If you cannot access us through either of those means, you should contact our clearing firm, Merrill Lynch, Pierce, Fenner & Smith Inc. (“Merrill Lynch”, see contact information below). As an introducing brokerage firm, Themis introduces customer accounts to Merrill Lynch on a fully disclosed basis for clearance purposes. As a clearing firm, Merrill Lynch is a member of the National Securities Clearing Corporation (“NSCC”). In accordance with the rules and procedures of the NSCC and applicable law, Merrill Lynch will compare, settle or carry out any transactions submitted to it for clearance and settlement by Themis, provided that the funds or financial instruments needed to settle those transactions are provided directly from our customers or our customer’s prime broker and provided that such transactions are not the subject of any third party claim.
Bank of America Tower
One Bryant Park, 5th Floor
New York, NY 10036
Contact: Ryan Macey (646)743-0793 phone
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 BCP 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 backup 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 counterparty 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, Merrill, has developed their own BCP in order to provide reasonable assurance of business continuity in the event that there are disruptions of normal operation at the firm’s critical facilities. As part of the plan, Merrill backs up its important Themis related 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 as soon as practical. Your orders and requests for funds and securities could be delayed during this period that Merrill implements its business continuity plans.
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 one hour. In a disruption affecting our business district, city, or region such as a pandemic, we will transfer our operations to a site outside of the affected area, and recover and resume business within one business day. In either situation, we plan to continue in business, transfer operations to our clearing firm if necessary, and notify you through our customer emergency numbers provided in the “Contacting Us” section. 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.
For more information – If you have questions about our business continuity planning, please contact us as follows.
Themis Trading LLC
Paul Zajac, Partner
5. ORDER ROUTING INFORMATION
Pursuant to SEC Rule 606, formerly Rule 11ac1-6, Themis provides its order routing information to its clients. Please see the following website link for our most recent routing information.
In addition, upon written request, Themis will provide: (1) the venue to which an order was routed for execution at any time during the six month period prior to the request; (2) whether the order was directed or non-directed; and (3) the time of the execution that resulted from such order.
Please contact Themis as follows with any disclosure questions.
Themis Trading LLC
Paul Zajac, Partner
6. PAYMENT FOR ORDER FLOW
SEC Regulation NMS Rule 607 requires Themis to disclose its payment for order flow practices. In connection with this rule Themis has no payment for order flow relationships with any broker dealers or third party execution providers. However, Themis is a member on several stock exchanges that employ maker-taker pricing mechanisms; therefore there are times when Themis receives a rebate for trades occurring on those exchanges, as well as times when Themis is charged for trades occurring on those exchanges. Themis does not internalize any order flow.
7. ORDER HANDLING DISCLOSURE
Themis is committed to seeking to obtain best execution when handling your orders. Unless you designate otherwise, Themis handles your orders on a “not held” basis. The designation of an order as “not held” gives Themis the flexibility and discretion to act in your best interest by working your orders to obtain the best possible price. “Not held” orders are not subject to the SEC Order Handling Rules. Unless you indicate otherwise, this understanding applies regardless of the method you use to communicate your order including, but not limited to telephone, instant message (“IM”), email, or FIX transmission. Please inform your Themis sales trader, if you no longer wish to have your orders handled on a “not held” basis.
8. INSTITUTIONAL ACCOUNTS
Themis considers your account to be an "institutional account," as defined under FINRA Rule 4512 (c). Furthermore, we also consider certain newly established registered investment advisors and hedge funds to be institutional accounts.
9. ANTI MONEY LAUNDERING
The USA Patriot Act (the “Act”) was established to detect, deter and punish terrorist acts in the US and world. The Act imposes anti-money laundering requirements on broker-dealers and other financial institutions. Under the Act’s provisions, all broker-dealers are required to have comprehensive anti-money laundering programs with procedures and controls that include verification of the identification of new customers, reporting suspicious transactions, reporting certain currency/asset transfers, designation of a compliance officer, and conducting an independent audit of the program. All customer transactions conducted by Themis are subject to compliance with the Act.
10. SHORTS SALES
The SEC has adopted Regulation SHO covering short sale transactions. The rule establishes certain stock locate and close-out standards that are intended to prevent abusive naked short selling practices. The regulation also imposes short sale related circuit breakers. All customer transactions conducted by Themis are subject to compliance with this rule.
11. EXTENDED HOURS TRADING RISK DISCLOSURE
Themis executes extended hour trades (before 930AM and after 4PM) for its clients. Please be aware of the following additional risks during Pre-Market and Post-Market trading.
• Risk of Lower Liquidity - Liquidity refers to the ability of market participants to buy and sell securities. Generally, the more orders that are available in a market, the greater the liquidity. Liquidity is important because with greater liquidity it is easier for investors to buy or sell securities, and as a result, investors are more likely to pay or receive a competitive price for securities purchased or sold. There may be lower liquidity in extended hours trading as compared to regular market hours. As a result, your order may only be partially executed, or not at all.
• Risk of Higher Volatility - Volatility refers to the changes in price that securities undergo when trading. Generally, the higher the volatility of a security, the greater its price swings. There may be greater volatility in extended hours trading than in regular market hours. As a result, your order may only be partially executed, or not at all, or you may receive an inferior price in extended hours trading than you would during regular markets hours.
• Risk of Changing Prices - The prices of securities traded in extended hours trading may not reflect the prices either at the end of regular market hours, or upon the opening of the next morning. As a result, you may receive an inferior price in extended hours trading than you would during regular market hours.
• Risk of Unlinked Markets - Depending on the extended hours trading system or the time of day, the prices displayed on a particular extended hours system may not reflect the prices in other concurrently operating extended hours trading systems dealing in the same securities. Accordingly, you may receive an inferior price in one extended hours trading system than you would in another extended hours trading system.
• Risk of News Announcements - Normally, issuers make news announcements that may affect the price of their securities after regular market hours. Similarly, important financial information is frequently announced outside of regular market hours. In extended hours trading, these announcements may occur during trading, and if combined with lower liquidity and higher volatility, may cause an exaggerated and unsustainable effect on the price of a security.
• Risk of Wider Spreads. The spread refers to the difference in price between what you can buy a security for and what you can sell it for. Lower liquidity and higher volatility in extended hours trading may result in wider than normal spreads for a particular security.
• Risk of Lack of Calculation or Dissemination of Underlying Index Value or Intraday Indicative Value ("IIV"). For certain Derivative Securities Products, an updated underlying index value or IIV may not be calculated or publicly disseminated in extended trading hours. Since the underlying index value and IIV are not calculated or widely disseminated during the pre-market and post-market sessions an investor who is unable to calculate implied values for certain Derivative Securities Products in those sessions may be at a disadvantage to market professionals.
Themis and its employees understand that privacy is an important issue for its customers. It is our policy to respect the privacy of all customers and accounts that we maintain as an introducing broker, and to protect the security and confidentiality of related non-public information. We also understand that this policy applies to current and former customers.
Personal/Private Information Collections - Themis introduces accounts on a fully disclosed basis to Themis’ clearing broker, Merrill Lynch. In order to service introduced accounts and provide other financial services that customers have requested (e.g. commission sharing arrangements), Themis collects information and provides it to its clearing broker and other required parties. The information may come from the following sources:
• information received from customers, such as customer name, address, telephone number, social security number, tax ID number, occupation and income;
• information relating to trading and clearing in connection with customer transactions, including account balances, trade details, positions and allocations;
• information received from consumer reporting agencies, customer vendors and the government, such as credit bureau and other information relating to customer creditworthiness or reports obtained while conducting our AML obligations; and
• information received from other sources with customer consent or with the consent of customer clearing brokers.
Sharing of Nonpublic Information - Themis does not disclose non-public personal information relating to current or former customers to any third parties, except as required or permitted by law and in order to facilitate the clearing of customer transactions, records archiving, or other financial services requested by customers in the ordinary course of business.
Security - Themis strives to ensure that our systems are secure and that they meet industry standards. We protect personal information by maintaining physical, electronic and procedural safeguards that either meet or exceed applicable law. Where appropriate, we employ firewalls, encryption technology, user authentication systems (i.e. passwords and personal identification numbers) and access control mechanisms to control access to systems and data. Third parties who have access to such personal information must also agree to follow appropriate standards of security and confidentiality.
Opt-out Policy - If you prefer that we do not share your information (other than as prescribed by law) with non-affiliated third parties, you may contact our Compliance Department at 973-665-9600 or pzajac@ThemisTrading.com.
13. LARGE TRADER RULE
In accordance with Securities Exchange Act Rule 13h-1 market participants that conduct a substantial amount of trading activity are required to file Form 13H in order to identify themselves as a “large trader” to the SEC. The SEC assigns a large trader identification number that must be provided to the participants registered broker-dealers. Broker-dealers are then required to maintain records, including large trader transaction times, which may be required upon the request of the SEC.
14. INTERNET SECURITY
Should you suspect your personal email account has been compromised, please contact Themis immediately at (973) 665-9600 so that you can instruct us to temporarily suspend any electronic delivery of sensitive account information as needed until you can resolve those issues with your internet service provider.
15. ODD LOT TRADING / “TRADE SHREDDING”
In connection with certain exchange regulations we remind you of the following prohibited actions. Themis traders comply with these prohibitions.
• Breaking up orders for the primary purpose of maximizing rebates or other payments;
• Breaking up orders for the purpose of affecting the number of regulatory authority transaction reports; and
• Entering both buy and sell odd-lot limit orders in the same stock before one of the orders is executed for the purpose of capturing the spread in the stock.