As part of our ongoing commitment to our clients, this will serve to provide you with an overview regarding the Schon-EX LLC (“Schon-EX”) Business Continuity Plan (“BCP”).
Business Purpose
On April 7, 2004, the Securities and Exchange Commission approved NASD Rules 3510 and 3520 which require member firms to create and maintain a business continuity plan. A business continuity plan is a plan that will enable the firm to continue its business operations in the event of a significant business interruption.
Business Continuity Components
Schon-EX has evaluated the impact of business interruptions resulting from various events including but not limited to loss of facilities and resources. The BCP was developed by requiring each business division to assess their business continuity risk. This review included all aspects of Schon-EX’s key activities including, but not limited to, trading, sales, settlement, clearance, custody and funding. This review defined, for each business, its importance, exposure to risk and probability of failure.
The Schon-EX BCP addresses the following key elements:
- Data Back-Up and Recovery
- Identification of Mission Critical Systems
- Financial and Operational Assessments
- Alternate Communications with Customers
- Alternate communications with Employees
- Alternate Physical Location of Employees
- Impact of Critical Business Counter-Parties
- Regulatory Reporting
- Communications with Regulators
- Customers Access to Funds and Securities
Recovery Plan
Schon-EX developed a plan, by business unit, to alleviate interruptions of processes that were considered critical. Critical data and system applications have been duplicated, and alternative systems and procedures, including manual processes, have been identified to enable continued functionality in the case of an event.
In the event of a business interruption, Schon-EX has established a data recovery plan as well as staff and workspace recovery plan. The data recovery plan includes maintenance of redundant real-time system facilities located outside of Long Island and Manhattan. The staff and workspace recovery plan includes the relocation of critical personnel to alternate sites. The Schon-EX BCP is designed to enable the firm to be operational within 24 hours or less assuming that industry critical systems are operational.
Updates and Information Requests
The Schon-EX BCP is reviewed and tested at a minimum annually. Modifications and updates are made to incorporate any material business change or regulatory requirement. To obtain a copy of the Schon-EX BCP summary plan, please submit a written request to:
Schon-EX LLC
Attn: Compliance Department
One Jericho Plaza
Jericho, N.Y. 11753
Schon-EX will continue to promptly post modifications and updates to the BCP on the website located at www.Schonfeld.com.
