Customer Disclosure Statement
KGS-Alpha Capital Markets, L.P. has developed a Business Continuity Plan (BCP), which is reasonably designed to enable us to quickly recover and resume business operations after a significant business disruption (SBD). While the nature and impact of any given business disruption is often difficult to predict, our objectives in any situation are always the same: 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.
Accordingly, our BCP addresses: data back-up and recovery; all mission critical systems; financial and operational assessments; alternative communications with customers, employees, and regulators; alternate physical location of employees; critical supplier, contractor, bank and counter-party impact; regulatory reporting; and assuring our customers prompt access to their funds and securities if we are unable to continue our business.
Our clearing firm, Pershing, LLC, and Broadridge SPS, the service provider that processes our self-cleared trades, have technology facilities located in multiple locations, providing the redundancy necessary to protect important customer files. While every emergency situation poses unique problems based on external factors (such as time of day and the severity of the disruption), both Pershing and Broadridge have assured us that, when confronted with an SBD, their objective is to restore their own operations and be able to complete existing transactions and accept new transactions and payments as outlined in their respective BCPs. A copy of Pershing’s BCP is available at www.pershing.com.
Significant Business Disruptions: The Company's plan takes into account two kinds SBDs, internal and external. Internal SBDs affect only the Company's ability to communicate and do business, such as a fire or loss of electrical power in the office or building.
External SBDs prevent the operation of the securities markets or a number of firms, such as a terrorist attack, a natural disaster, or another event that causes a wide-scale, regional disruption in essential services.
Internal SBDs: In the event of a disruption in the Company's business operations due to an internal SBD, the Company will attempt to continue to conduct business operations by utilizing, to the extent possible, alternative communication methods (if available), such as the Internet, cell phones, etc., or by moving its operations to an alternative location.
If personnel or operations must be moved to an alternate location, the Company will attempt to recover and resume regular operations within 24 hours.
External SBDs: In the event of a disruption in the Company's business operations due to an external SBD, the Company will attempt to continue to conduct business by moving its operations to an alternative location outside the affected area, if possible, or by providing customers with alternative communication arrangements, as indicated below, to conduct business or to access their funds and securities.
Further, to the extent possible, the Company will attempt to resume business within 24-48 hours and to keep its customers informed regarding relevant events to the best of its ability based on the circumstances.
In all cases, the Company will resume normal business operations as soon as it is able to do so, based on the type and the extent of the disrupting event.
If the significant business disruption is so severe that it prevents us from remaining in business, we will do our best to assure our customers' prompt access to their funds and securities.
Communications: In the event you are unable to reach the Company at our main number, please proceed as follows:
- Contact the Company at the following telephone numbers: 877-939-0506
- Contact the clearing firm directly at the following telephone number to process transactions or for information on your holdings: 201-413-2000
- Access the clearing firm's website at www.pershing.com, for additional information.
Contact information: Any questions regarding the Company's Business Continuity Plans should be addressed to: Michael Gentile, KGS-Alpha Capital Markets, L.P., 601 Lexington Ave, 44th Floor, New York, NY 10022 or call 646-588-2102.
Please note that there can be no assurance that our BCP will be fully effective in mitigating all risks, or that we will be able to fully resume our business activities within the time frames planned.