Two Sigma Securities, LLC (“Two Sigma Securities”) has created a Business Continuity Plan that outlines how we plan to respond to events that may significantly disrupt our business. It is important that Two Sigma Securities be flexible in responding to events as they take place, due to the unpredictable timing and impact of disasters and disruptions. The Business Continuity Plan is designed to enable us to meet our existing obligations to our customers and to address existing relationships with other broker-dealers and counterparties. Any updates to our Business Continuity Plan summary will be made available on our website.
Our Business Continuity Plan
We seek to quickly recover after a significant business disruption by safeguarding our employees and property, making a financial and operational assessment, protecting our books and records, and allowing our customers and counterparties to transact business.
Our Business Continuity Plan addresses the following areas, including, but not limited to: data backup and recovery; mission critical systems; financial and operational assessments; alternative communications with customers, counterparties, employees, and regulators; alternate physical location of employees; critical business constituent, bank and counterparty impact; and regulatory reporting.
Significant business disruptions can vary in their scope, such as disruptions to Two Sigma Securities only, a building which houses our firm or the business district, city or region in which our firm is located. Within each of these areas, the severity of the disruption can also vary from minimal to severe. In a disruption to Two Sigma Securities, a building housing our firm or the business district in which our firm is located, we aim to be operational within 4 hours of the disruption(s). Disruptions affecting the city or the entire region in which Two Sigma Securities is located may require us to move staff and operations to an alternative site and recover and resume business as soon as possible. In either situation, we will provide notice to you regarding how to contact us via email, telephone, or through the website as soon as possible. If the significant business disruption is so severe that it prevents us from remaining in business, we will notify our customers and counterparties as soon as possible so that our counterparties will have the option to seek an alternative executing broker. Two Sigma Securities does not custody any assets for any customers or clear or settle trades as all non-broker dealer transactions are cleared on a DVP/RVP basis. All transactions are cleared and settle through a third party and Two Sigma Securities is subject to disruptions that may impact our clearing broker’s ability to clear our trades. Our clearing broker also maintains a Business Continuity Plan that is designed to minimize the impact of significant business disruptions.
While TSS has employed significant steps to develop, implement and maintain a reasonable BCP, TSS cannot guarantee its systems will absolutely recover after a significant business disruption. TSS regularly monitors and assesses its BCP. This Summary is intended to satisfy the disclosure requirements set forth in FINRA Rule 4370.
If you have any questions regarding our Business Continuity Plan, please contact your Two Sigma Securities representative.