| Home |
BIRKELBACH MEMBER FINRA /MSRB/ S.I.P.C. |
A. Emergency Contact Persons
Our firm’s emergency contact persons are: Carl M. Birkelbach, (312) 853-2820 ext. 105, Email: CarlBIS@aol.com and William J. Murphy, (312) 853-2820 ext. 103, Email: bill@my-broker.com. These names will be updated in the event of a material change, and will be reviewed within 17 business days of the end of each quarter.
B. Firm Policy
Our firm’s policy is to respond to a Significant Business Disruption (SBD) by safeguarding employees’ lives and firm property, making a financial and operational assessment, quickly recovering and resuming operations, protecting all of the firm’s books and records, and allowing our clients to transact business. In the event that we determine, we are unable to continue our business, we will assure clients prompt access to their funds and securities.
1. Significant Business Disruptions (SBDs)
Our plan anticipates two kinds of SBDs – internal and external. Internal
SBDs affect only our firm’s ability to communicate and do business, such
as a fire in our building.
External SBDs prevent the operation of the securities markets or a number of
firms such as a terrorist attack, a city flood, or a wide-scale regional disruption.
Our response to an external SBD relies more heavily on other organizations and
systems, especially on the capabilities of our clearing firm.
2. Approval and Execution Authority
Carl M. Birkelbach, a registered principal, is responsible for approving the plan and for conducting the required annual review. Carl M. Birkelbach and William J. Murphy in descending order, all have the authority to execute this Business Contingency Plan (BCP).
3. Plan Location and Access
Our firm will maintain copies of its BCP plan and the annual reviews, and the changes that have been made to it for inspection. We maintain our BCP plan as an integral part of the BIS Office Broker Procedure and Addendums in electronic and hard copy form.
4. Business Description
Our firm conducts business in equity, fixed income, and derivative securities. Our firm is an introducing firm and does not perform any type of clearing function for itself or others. Furthermore, we do not hold customer funds or securities. We accept and enter orders. All transactions are sent to our clearing firm, which executes our orders, compares them, allocates them, clears and finally settles them. Our clearing firm, in addition to maintaining our customers’ accounts, can grant customers access to them, deliver funds as well as securities. Our firm services retail and institutional customers. We may engage in private placements.
5. Office Location
Our office has a single location at 208 South La Salle Street, Suite #1442, Chicago, IL 60604-1103. Its main telephone number is (312)-853-2820. Our employees may travel to that office through the following transportation methods: foot, car, subway, train and bus. We engage in order taking and entry at this location.
6. Alternative Physical Location(s) of Employees
The 208 S. La Salle building management has provided BIS with a pamphlet of
emergency action. BIS conducts regular meetings go discuss these plans. The
firm also participates in the fire drills conducted by the management of the
building and informs employees of evacuation procedures. Mr. Carl Birkelbach
is in charge of co-coordinating our plan with the building.
The firm is in the process of researching an additional acceptable alternate
location for employees should an SBD occur. In the event of an SBD, we will
relocate our staff to:
330, S. Michigan Ave
Suite 1712,
Chicago IL
(312)-213-1916
7. Customers’ Access to Funds and Securities
BIS does not maintain custody of customers’ funds or securities. They are maintained at Pershing. In the event of an internal or external SVD, the firm has several contingency measures in place. BIS has a quotation system: Net Exchange Pro (with order entry provisions) provided by Pershing and the firm has access though a T1 and DSL line. The firm also has a direct private line to Pershing, which can be used for order entry and account information. BIS can also access the Net Exchange Pro system using America Online, and a regular telephone line from any location where a landline is available. Wireless communications are being examined. BIS can also enter orders via direct telephone to Pershing traders. The telephone numbers are posted next to the trading desk and are on the firm’s Palm Pilot system and are as follows. These can be used with either land bases or wireless phones.
General Operations: (888)-367-2563, Stock Loan: (800)-551-SHRT, Listed Desk (201)-413-3575, OTC Desk: (201)-413-4920, Equity Options: (201)-413-4100, F/I Desk: (201)-413-4970, Load MF Desk: (800)-266-1864.
If there is a blackout and we have permission to stay in the building, as long as the telephone lines are unaffected the firm can assess market information through a laptop computer. There firm has several cellular telephones; all of them may be used if the landline telephone system is not operational. All of the clocks at BIS are battery powered.
BIS also has several remote locations where computers are available and allows BIS to gain access to market information and Net Exchange. These locations are:
a. 330 South Michigan Avenue, Suite 1712, Chicago, Illinois (Tel: 312-663-9660)
b. 102 Grouse Lane, Silverthorne Colorado
(Tel: 920-513-0619)
c. The Kenwood – 773-832-9151
In case the Securities Investor Protection Corporation (SIPC) determines that BIS is unable to meet its obligations to customers or if the firm’s liabilities exceed assets in violation of Securities Exchange Act Rule 15c3-1, SIPC may seek to appoint a trustee to disburse our assets to customers. The firm will assist SIPC and the trustee by providing the firm’s books and records identifying customer accounts subject to SIPC regulation.
8. Data Back-Up and Recovery (Hard Copy and Electronic)
BIS maintains its primary hard copy books and records and its electronic records at the office on 208 South LaSalle in fireproof boxes. Mr. Carl Birkelbach, our compliance officer is responsible for the maintenance of these books and records.
The firm maintains its back-up hard copy books and records at 330 South Michigan Avenue. These records are maintained in digital and hard copy formats. Carl Birkelbach is responsible for the maintenance of these back-up books and records. BIS backs up records on the server by copying them on a portable USB hard drive and taking them to our back-up site. Records are backed-up on a weekly basis.
In the event of an internal or external SBD that causes the loss of our paper records, the firm will physically recover them from the back-up site. If our primary site is inoperable, we will continue operations from our back-up site or an alternate location. Pershing has given us permission to use their Oakbrook office in an emergency situation as well as their remote location in Melrose Park. The Pershing business continuity plan requires record back up of all accounts and information from two remote locations.
In the case of loss of electronic records, the firm will either physically recover the storage media or electronically recover data from a back-up site, or, if the primary site is inoperable, continue operations from the back-up site or an alternate location. The firm’s laptops can be used from any location, as can phones. It can also be used to connect to any computer at the firm.
BIS continues to reflect upon the data back-up and recovery process and is currently evaluating the EVault system offered through the FINRA.
9. Financial and Operational Assessments
i. Operational Risk
In the event of an SBD, the firm will immediately identify what means will permit us to communicate with our customers, employees, critical business constituents, critical banks, critical counter-parties, and regulators. Although the effects of an SBD will determine the means of alternative communication the firm would be able to provide. The firm will, however, retrieve key activity records as described in the section above, Data Back-Up and Recovery (Hard Copy and Electronic).
ii. Financial and Credit Risk
In the event of an SBD, the firm will determine the value and liquidity of our investments and other assets to evaluate our ability to continue to fund our operations and remain in capital compliance. BIS will contact Pershing, critical banks, and investors to apprise them of the firm’s financial status. If BIS determines that it is unable to meet obligations to those counter-parties or otherwise continue to fund the firm’s operations, BIS will request additional financing from our bank or other credit sources to fulfill obligations to customers. If BIS cannot remedy a capital deficiency, BIS will file appropriate notices with our regulators and immediately take appropriate steps as advised by counsel.
10. Mission Critical Systems
The firm’s “mission critical systems” are those that ensure prompt and accurate processing of securities transactions, including order taking, entry, and the maintenance of customer accounts and access to customer accounts.
BIS has primary responsibility for establishing and maintaining its business relationships with customers and has sole responsibility for mission critical functions of order taking and entry. Pershing provides, through contract, the execution comparison, allocation, clearance and settlement of securities transactions, the maintenance of customer accounts, access to customer accounts, and the delivery of funds and securities.
Pershing represents that it backs up our records at a remote site.
11. Our Firm’s Mission Critical Systems
i. Order Taking
Currently, the firm receives orders from customers via telephone or facsimile.
During an SBD, either internal or external, we will continue to take orders
through any of these methods that are available and reliable, and in addition,
as communications permit, we will inform our customers when communications become
available to tell them what alternatives they have to send their orders to us.
Customers will be informed of alternatives by telephone. If necessary, we will
advise our customers to place orders directly with Pershing.
ii. Order Entry
Currently, the firm enters orders by recording them on paper or electronically
and sends them to our clearing firm either electronically or through telephone.
In the event of an internal SBD, the firm will enter and send records to Pershing by the fastest alternative means available, which include is dependent on the nature of the SBD. In the event of an external SBD, we will maintain the order in electronic or paper format, and deliver the order to Pershing by the fastest means available when it resumes operations. In addition, during an internal SBD, we may need to refer our customers to deal directly with Pershing for order entry.
12. Mission Critical Systems Provided by Our Clearing Firm
BIS relies on Pershing to provide order execution, order comparison, order allocation, and the maintenance of customer accounts, delivery of funds and securities, and access to customer accounts. As mentioned earlier, they have alternative systems in place.
C. Alternate Communications Between the Firm and Customers, Employees, and Regulators
1. Customers
BIS communicates with customers by telephone, facsimile, U.S. mail, and in person visits at the firm or at the other’s location. In the event of an SBD, we will assess which means of communication are still available to us, and use the means closest in speed and form (written or oral) to the means that we have used in the past to communicate with the other party.
2. Employees
BIS communicates with employees by telephone or in person. In the event of an SBD, we will assess which means of communication are still available to us, and use the means closest in speed and form (written or oral) to the means that we have used in the past to communicate with the other party. The firm will also employ the call tree in the table below, so that senior management can reach all employees quickly during an SBD.
The person to invoke use of the call tree is: Carl M. Birkelbach.
BIRKELBACH INVESTMENT SECURITIES, INC.
BIS: (312)-853-2820; (800) 458-2358 ; FAX (312) 853-3183
EXT: NAME: BROKER #: HOME/CELL
105 Birkelbach, Carl M. 055 President/ 312-663-9660/ 312-213-1916
103 Murphy, William J. 357 Manager 708-371-0639
102 Stone, Jack 690 Broker 312-943-2203
100 Padmanaban, Senthilkumar “Sen” 056 Options Principa 312-804-4263
120 Castille, Brady-Compliance Officer 312-513-3251
125 Kumar, Rishi Staff 847-770-7887
121 Avello, Nick Part Time 312-514-9357
117 Barczak, Ron 067 Broker 847-255-2177
122 Gilbert, Ron Operations 773-677-3555
110 Jones, Allen 213 Broker 773-271-2079
106 Kopulos, Leonidas 029 Broker 773-548-3927
111 Castille, Brady Broker 312-513-3251
108 Mann, Steve 594 Broker 847-931-1989
118 Stead, Jim 324 Broker 815-469-3639
104 Turner, William 825 Broker 708-420-7204
107 Zahn, Tom 003 Trading 630-250-7929
IC Silverman, Howard 103 Broker 312-664-5857
IC Zurek, James K. 106 Broker 847-487-2510
IC Besler, Barbara 777 Broker 847-724-0556
IC Feldman, Dmitri 349 Broker 847-910-5963
IC McLaughlin, Gerald T IT-Technology 773-472-3137/
773-296-6510
IC Lenhart, Brian Compliance 708-624-1982
Consultant
Conference Room 113 Building Security (312) 263-6650
Compliance 105 Help Desk 125
Trading 107 Pershing 1-888-367-2563
Operations 122 Fixed Income 1-800-924-9696
NetEx Pro Help 1-888-878-3142
3. Regulators
BIS is a member of the FINRA and MSRB. The firm communicates with regulators by telephone, facsimile, U.S mail and in person. In the event of an SBD, we will assess the means of communication that are still available to us, and use the means closest in speed and form (written or oral) to communicate with the other party.
D. Critical Business Constituents, Banks, and Counter-Parties
1. Business constituents
BIS has contacted our critical business constituents (businesses with which we have an ongoing commercial relationship in support of our operating activities, such as vendors providing us critical services), and determined the extent to which we can continue our business relationship with them in light of the internal or external SBD. We will quickly establish alternative arrangements if a business constituent can no longer provide the needed goods or services when we need them because of a SBD to them or our firm. A list of these business constituents is maintained in our Quicken file.
2. Banks
BIS has contacted banks and lenders to determine if they can continue to provide the financing that we will need in light of the internal or external SBD. The bank maintaining our operating account is: Chase, located at La Salle Street, Chicago IL. Our account representative at Chase is Ms. Kitty Johnathan (Tel: 312-661-6889). The bank maintaining our Proprietary Account of Introducing Brokers/Dealers (PAIB account) is La Salle National Bank, located at 135 South La Salle Street, Chicago IL. If our banks and other lenders are unable to provide the financing, we will seek alternative financing immediately from La Salle National Bank as above. The Banks have Web sites, which would post emerging information, should they experience an SBD (www.chase.com) and (www.lasallebank.com).
3. Counter-Parties
BIS has contacted our critical counter-parties, such as other broker-dealers or institutional customers, to determine if we will be able to carry out our transactions with them in light of the internal or external SBD. Where the transactions cannot be completed, we will work with Pershing or contact those counter-parties directly to make alternative arrangements to complete those transactions as soon as possible.
E. Regulatory Reporting
BIS is subject to regulation by the FINRA and the Illinois State Securities Commission. We now file reports with our regulators using paper copies in the U.S. mail, and electronically using facsimile and the Internet. In the event of an SBD, we will check with the appropriate regulators to determine which means of filing are still available to us, and use the means closest in speed and form (written or oral) to our previous filing method. In the event that we cannot contact our regulators, we will continue to file required reports using the communication means available to us.
F. Disclosure of Business Continuity Plan
BIS provides in writing, a BCP disclosure statement to customers at the time of opening an account. We post the disclosure statement on our Web site as well as mail it to our customers on request. Our disclosure statement is attached as follows.
Dear Customer,
Our firm has a plan of business continuity should for any reason we experience a significant business disruption (SBD). Our clearing firm, Pershing holds all customer funds and or securities and executes all transactions. In the event of an SBD, Pershing can be reached at (201)-413-3635 and on the Web at www.pershing.com or www.netxclient.com. Emergency instructions can be obtained at (213)-624-6100, Extension: 500. Our website is www.my-broker.com.
In the event of an SBD, we have three back up sites:
1) 330 S. Michigan Avenue, Suite 1712,
Chicago, IL 60604,
Phone: (312)-663-9660 and,
Cell phone: (312)-213-1916.
2) 102 Blue Grouse Lane,
Silverthorne, Colorado.
Phone: (970)-513-0619 and,
Cell phone: (312)-213-1916.
4) The Kenwood
3121 North Sheridan Road, 1208
Chicago, IL 60567
Phone: (773) 832-9151
G. Updates and Annual Review of BCP
BIS will update this plan whenever a material change occurs to operations, organizational structure, business or locations of our own or those of our clearing firm. In addition, the firm will review this BCP at the time of reviewing the Office and Broker Procedure and Addendums; thereupon, the firm as necessary will modify it for any changes in our operations, structure, business, or location or those of Pershing.
H. Senior Manager Approval
I have approved this Business Continuity Plan as reasonably designed to enable
our firm to meet its obligations to customers in the event of an SBD.
Signed: _________________________________
Name: Carl M. Birkelbach
Title: Chairman and Chief Executive Officer
Date: January-02-2009
ADDITIONAL FEES THAT MAY BE APPLIED
Margin Extensions: $21.00 per event. Returned Checks: $31.00 per event. ACH
and Resource Checking returned checks: $20.00 per event. Resource Checking Stop
Payment: $10.00 per event. Retail Customer Confirmation charge: $5.50 per confirmation.
Voluntary Reorganization Activities: $30.00 per event. Custody Fee: $50.00 per
inactive account per year. Legal, GNMA or Restricted Share Transfers: $60.00
per transfer. Register and Ship Certificates: $60.00 per transfer. Accommodation/Courtesy
Certificate Transfers: $40.00 per transfer. Outgoing Account Transfers: $75.00
per transfer. Foreign EuroClear Receive/Deliver Securities: $50.00 per item.
All Other Foreign Securities: $75.00 per item. Customer Name Safekeeping: $2.00
per account, per position, per month. Foreign Securities Safekeeping: $2.00
per account, per position, per month. Precious Metals Storage Fee: 75 Basis
Points of market value per annum, pre-billed quarterly. Wired Funds: $30.00
per wire transfer. Mutual Fund and SRS Exchanges (includes confirm fee): $10.00
per exchange. Fractional Share Equity Dividend Re-investment: $1.00 per item.
Overnight Delivery: $20.00 per item. Interest charges on short securities will
be passed through. Other interest charges may apply.
| Home |