Introduction
[FINRA Rule 4370; FINRA Notice to Members 06-74 and 04-37; NASDAQ Rule 3510; SIFMA Business Continuity Planning website: http://www.sifma.org/Services/Business-Continuity-Planning/]
INX Securities, LLC (“INXS”) has developed a Business Continuity Plan (the “Plan”) to provide procedures for response and recovery in the event of a significant business disruption. The purpose of the Plan is to:
- identify responsible personnel in the event of a disaster;
- safeguard employees’ lives and firm property;
- evaluate the situation and initiate appropriate action;
- recover and resume operations to allow continuation of business;
- provide customers with access to their funds and securities; and
- protect books and records.
The Plan was developed considering the types of business conducted, systems critical to support business, and geographic dispersion of offices and personnel.
DESIGNATION OF RESPONSIBILITIES
The following is a list of those responsible for the INXS Business Continuity Plan.
RETENTION AND LOCATION OF THE PLAN
Copies of the current and prior versions of the Business Continuity Plan are retained as follows.
- A current hard copy is retained by Compliance with a record of the senior manager’s approval.
- An electronic copy is retained on the company shared-drive.
Copies are dated as of the effective date of the version of the Plan.
IMPLEMENTATION OF THE PLAN
The Plan has been designed to be implemented in the event of a disaster that results in a significant business disruption. Whether all or only parts of the Plan are implemented depends on the nature of the disruption. Generally, a significant business disruption would include:
- Destruction of one of INXS’ offices or facilities, whether by natural causes or by other means;
- Loss of life or major injuries to personnel in an office location that disables that office’s ability to conduct business;
- Disruption of service from a critical service provider;
- Disruption of service due to wide-ranging regional outages such as a power outage.
EMERGENCY RESPONSE TEAM
INXS has designated an Emergency Response Team that is responsible for implementing necessary procedures included in this Plan. The Response Team’s action will depend on the nature and scope of the disruption. The “first responder” has the primary responsibility for taking action, and the “secondary responder” acts as a back-up in the event the first responder is unable to act. Where feasible, the two responders are located in different office locations.
| Action | First Responder/Location | Secondary Responder/Location |
|---|---|---|
| Contact emergency services such as police, fire department | CCO/PA | CEO/PA |
| Establish off-site command center and notify employees | CCO/PA | CEO/PA |
| Contact employees regarding Plan initiatives | CCO/PA | CEO/PA |
| For affected offices, evaluate business disruption and transfer employees and business operations to other locations | CCO/PA | CEO/PA |
| Appoint individuals to manage business areas where needed | CCO/PA | CEO/PA |
| Assess financial and operations capabilities | CCO/PA | CEO/PA |
| Determine financial and credit risk and contact banks and other counter-parties, if necessary, to secure financing to continue operations | CCO/PA | CEO/PA |
| Notify regulators in the event of a capital deficiency | CCO/PA | CEO/PA |
| Interface with SIPC if liquidation of business is initiated | CCO/AP | CEO/PA |
| Contact critical service providers | CCO/PA | CEO/PA |
| Transfer mission critical functions that are disrupted | CCO/PA | CEO/PA |
| Initiate alternative customer communications systems or procedures | CCO/PA | CEO/PA |
| Notify customers regarding alternative access to funds and securities | CCO/PA | CEO/PA |
| Recover back-up records when primary records are destroyed or inaccessible | CCO/PA | CEO/PA |
| Contact regulators and notify them of contact persons and recovery plans | CCO/PA | CEO/PA |
