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Legent Clearing LLC
Business Continuity Plan Summary

Legent Clearing LLC (“Legent”) has developed and maintains on file a Business Continuity Plan (“BCP”) as it relates to FINRA Rules 3510 and 3520.  In addition, Legent has prepared and keeps on file an Information Systems Disaster Recovery Plan, a comprehensive and complex plan regarding technical recovery of Legent data.  The plans address recovery strategies, critical business processes, recovery teams, and recovery procedures.  Jean Luther, Senior Vice President, Operations Manager or Jeff Sime, Chief Operations Officer have the authority to approve and execute the BCP. 

Legent maintains two business offices.  The Operations Office (“Omaha office”) is located at 9300 Underwood Avenue, Suite 400, Omaha NE 68114.  Our main telephone number is 402-384-6100. All clearing operations functions are performed at this office..

The Settlements processing is conducted at the Chicago office located at 635 Butterfield Road, Suite 300, Oak Brook Terrace IL 30181. Our main telephone number is 630-592-4848. 

The Technology/DR Center is located at 1001 Fort Crook Road North, Bellevue NE.  This location is our primary data center.  Our data back up center is located at  9300 Underwood Avenue, Suite 400, Omaha NE 68114.  Our main telephone number is 402-384-6100.

Legent performs clearing activities to introducing broker/dealers which include, but are not limited to, executing, clearing and settling securities transaction on behalf of the introducing firm, preparing and delivering confirmations of transactions and periodic account statements, extending credit (margin), performing cashiering functions such as receiving and delivering checks, funds and securities and collecting commission and other fees of introducing broker/dealers, safeguarding account funds and securities and maintaining books and records of the accounts.  Legent will disclose in writing a summary of our BCP to correspondents at the time an executed clearing agreement is received and when changes or updates are made to our plan.

It is Legent’s policy 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 customers to transact business. 

Legent’s BCP anticipates several kinds of disaster recovery levels, including immediate, short-term and long term.  Recovery refers to the restoration of clearing and settlement activities after a wide-scale disruption; resumption refers to the capacity to accept and process new transactions and payments after a wide-scale disruption.  The decision to formally declare a disaster will be made within four (4) hours of an incident.  A disaster will be declared if the disruption of computing services is expected to last beyond eight (8) hours.  Legent will notify their correspondents within four (4) hours of the incident if we declare a SBD.

Data Back-Up and Recovery (Hard Copy and Electronic)

Legent maintains its primary books and records in electronic records and hard-copy at 9300 Underwood Avenue, Suite 400, Omaha NE.

Lee Stafford, Chief Technology Officer, is responsible for the maintenance and back-up of the electronic records.  Legent utilizes the Grandfather, Father, and Son (“GFS”) system to ensure data integrity.  Daily backups will occur at night that will copy mission critical data. These tapes will be stored daily in a fire-resistant safe located at the Omaha Office.

Legent maintains an offsite storage facility located in Omaha NE for hard-copy documents.  Documents are also stored on microfiche with a back-up copy located at the storage facility.  Any documentation not yet stored on microfiche, can be recreated with data provided by Thomson Beta Systems.  Thomson Beta Systems is Legent’s primary processing provider with significant technology backup and redundant processing facilities.

Legent is responsible only for data back-up for account information processed through Legent.  The correspondent is responsible for any data that the firm maintains for direct or application way business.

In The Event of a Significant Business Disaster
Declared By Legent:

  1. Legent will assess which means of communication are still available to communicate with our correspondents and contact all correspondents of the issue(s) related to the significant business disaster. 
  2. If necessary, Legent will move designated staff from the Omaha office to the Denver location and basic business clearing operations will be established.  Legent will contact all correspondents via telephone, email or facsimile with instructions on continuing business operations. 
  3. In the event of a SBD that would no longer allow the Omaha office to accept orders, Legent will redirect orders to the Bellevue location once personnel are on site.  Legent will continue to take orders through methods that are available and reliable.  As the extent of the SBD is assessed, Legent will inform our correspondents what alternatives they have to send their orders to us.  Correspondents will be informed of alternatives by telephone, cellular telephone, email, or facsimile.   
  4. In the event of a SBD that would no longer allow the Omaha office or Legent staff access to client funds, Legent has made arrangements for clients to access funds invested in the Bank Sweep program through DB Advisors Liquidity Management Group.  Contact information will be communicated to all correspondents at the appropriate time (refer to item #1.
  5. Legent will assess our financial situation and value and liquidity of our investments and other assets to evaluate our ability to continue to fund our operations and remain in capital compliance.  If we determine that we may be unable to meet our obligations to those counter-parties or otherwise continue to fund our operations, we will request additional financing from our credit sources to fulfill our obligations to our correspondents.  If Legent cannot remedy a capital deficiency, we will file appropriate notices with our regulators and immediately.  These include the FINRA District 4 Office, the SEC Regional Office in Denver, and the FINRA Regulation and SEC Headquarters in Washington DC.  Legent will work with the FINRA District Office in Kansas City as our DEA to work toward resolving any capital issues. Legent maintains a list of our regulators, critical business constituents and bank contacts.

 

In The Event A Correspondent Declares
A Significant Business Disaster:

  1. Notify Legent as soon as possible in whatever means of communications are available to the correspondent.  Contact information is as follows:

    Brian Strasser
    Vice President

    402-384-6180
    brian.strasser@legentclearing.com

    Customer Service:

    800-811-3487 or 402-384-6101
    customerservice@legentclearing.com
  1. Describe the nature of the SBD and what business operations, if any, remain at the correspondent office.
  2. Provide a list of critical contacts and how they can be reached at the correspondent firm or alternate location.
  3. Outline the issue to the Customer Service Managers on what Legent should tell the clients regarding the correspondent SBD.

    *Please note that Legent Clearing will perform liquidation-only transactions, check requests and wire requests directly from customers with proper letters of authorization.  Legent will not accept purchase or buy orders.  Due to limited staff available for direct client contact, general account inquiries such as stock or bonds quotes, balance inquiries, market information, etc. should not be directed to Legent Customer Service.            

Legent will notify correspondents if there are any material changes in the plans.