Disclosures

Newedge Disclosures for Americas

Newedge USA, LLC (“NUSA”) is required to provide you with the following disclosures.

PAYMENT FOR ORDER FLOW (SEC RULE 607)

NUSA receives payment for order flow in return for routing customer orders in equity and equity options securities (“Covered Securities”) to certain market centers for execution.  Such payments typically take the form of liquidity rebates and credits.  While NUSA may consider payment for order flow in making routing decisions involving Covered Securities, we are committed to providing our customers with best execution.  

DISCLOSURE OF ORDER ROUTING INFORMATION (SEC RULE 606)

SEC Rule 606 requires all US-registered broker-dealers that route orders in equity and equity option securities to make available quarterly reports that present a general overview of their routing practices. The reports must identify the significant venues to which customer orders were routed for execution during the applicable quarter, and disclose the material aspects of the broker-dealer's relationship with such venues. In addition, the rule requires broker-dealers to disclose, upon customer request, the venues to which the customer's individual orders were routed.

Download NUSA's equity and equity option order routing data.

Upon your request, NUSA will:  provide you with the identity of the market center(s) to which each of your orders in Covered Securities have been routed for execution during the six months prior to your request; advise you as to whether such orders were directed or non-directed; and provide you with the execution times, if any, that resulted from such orders.

FINRA PUBLIC DISCLOSURE PROGRAM (FINRA RULE 2267)

FINRA’s BrokerCheck Hotline provides certain information regarding the disciplinary history of FINRA members and their associated persons in response to written inquiries, electronic inquiries, or telephonic inquiries via FINRA’s (1) toll-free telephone listing (1-800-289-9999), or (2) website (www.finra.org).  Additionally, FINRA has prepared an investor brochure that includes information describing BrokerCheck.

SECURITIES INVESTOR PROTECTION CORPORATION

NUSA is a member of the Securities Investor Protection Corporation (“SIPC”), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org.

NYSE FLOOR DISCLOSURE

As a member of the New York Stock Exchange (“NYSE”), Newedge USA, LLC (“NUSA”) is required to make the following disclosure to you regarding orders it may transmit on your behalf to the floor of the NYSE for execution.  Specifically, after transmitting such an order to the NYSE, the floor broker handling the order may permit the appropriate specialist to trade on parity with the order for some or all of the executions associated with filling that order, where such permission would not be inconsistent with the floor broker’s best execution obligations.

However, customers may, if they so choose, instruct NUSA to advise the relevant floor broker to object to such specialist trading, either as a blanket instruction, or an instruction that applies to one or more specific transactions.  Accordingly, please notify your NUSA account executive as to whether you object to such trading and, if so, whether such objection is on a blanket or order-by-order basis.  If we do not hear from you within two weeks of the date noted above, we will assume that you have no such objections.

NUSA is committed to adhering to the principles of best execution on behalf of its customers, and greatly appreciates your business.

If you have any questions or concerns regarding this matter, please contact Brian McDonald, Equity Trading Director, at 646-557-8486.

OPTIONS SOLICITATIONS NOTICE

Newedge USA, LLC (“NUSA”) provides you with the following regulatory disclosure relating to your purchase and sale of US-listed equity options.

ISE Notice

When handling an order of 500 contracts or more on your behalf, NUSA may solicit other parties to execute against your order and may thereafter execute your order using the International Securities Exchange’s (“ISE”) Solicited Order Mechanism.  This functionality provides a single-price execution only, so that your entire order may receive a better price after being exposed to the ISE’s participants, but will not receive partial price improvement.  For further details on the operation of this ISE Mechanism, please refer to ISE Rule 716, which is available at www.ise.com under “Membership, Rules and Fees – Regulatory – ISE Rules.”

CBOE Notice

When handling an order of 500 contracts or more, NUSA may solicit other parties to execute against your order and may thereafter execute your order using the Chicago Board Options Exchange’s (“CBOE”) AON AIM Solicitation Mechanism.  This functionality provides a single-priced execution, unless the order results in price improvement for the entire quantity, in which case multiple prices may result.  For further details on the operation of this mechanism, please refer to CBOE Rule 6.74B, which is available at www.cboe.org/Legal.

MARGIN DISCLOSURE STATEMENT

Pursuant to FINRA Rule 2264, NUSA 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 NUSA. Consult your NUSA account representative 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 NUSA. If you choose to borrow funds from NUSA, you will open a margin account with NUSA. The securities purchased are NUSA’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, NUSA can take action, such as issue a margin call and/or sell securities in your account, 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 in your account(s).
• NUSA can force the sale of securities in your account(s). If the equity in your account falls below the maintenance margin requirements under the law, or the firm’s higher "house" requirements, NUSA can sell the securities in your account to cover the margin deficiency. You also will be responsible for any shortfall in the account after such a sale.
• NUSA can sell your securities 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 in their accounts to meet the call unless the firm has contacted them first. This is not the case. Most firms will attempt to notify their customers of margin calls, 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 the customer.
• You are not entitled to choose which security in your margin account is liquidated or sold to meet a margin call. Because the securities are collateral for the margin loan, NUSA has the right to decide which security to sell in order to protect its interests.
• NUSA can increase its "house" maintenance margin requirements at any time and is not required to provide you with 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.
• 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 the extension.