Disaster Recovery and Business Continuity

Lime Brokerage LLC (“Lime”) has developed a Disaster Recovery and Business Continuity Plan (“Plan”) in the event that a function deemed critical to Lime’s ongoing business operations fails. The plan will assist Lime to minimize any business operational issues that result from an unexpected event or disaster.

Lime’s policy is to respond to a Significant Business Disruption (SBD) by safeguarding employees’ lives and Company property, making a financial and operational assessment, quickly recovering and resuming operations, protecting all of the firm’s books and records, and allowing customers to transact business. In the event that the Company determines that it is unable to continue business, Lime will assure customers prompt access to their funds and securities.

Lime’s plan anticipates two kinds of SBDs, internal and external. Internal SBDs affect only Lime’s ability to communicate and do business, such as a failure of a critical system, or a fire in the Lime offices. 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.

In the event of an SBD, Lime intends to continue its operations to the extent reasonable and practical under the circumstances and will place utmost priority in re-establishing the data and operational systems necessary to provide our customers with prompt access to their funds and securities, and with the ability to close out open positions. We will continue to take orders through any of the methods that are available and reliable, and in addition, as communications permit, we will inform our customers what alternatives they have to send their orders to us.

Lime does not maintain custody of customers’ funds or securities, which are maintained by our clearing firm. In the unlikely event that we determine we are unable to continue our business as a result of an SBD, we will assure customers prompt access to their funds and securities through our clearing firms.

Lime backs up its records on a periodic basis, keeping copies of essential databases, software programs, and other records offsite. Additionally, our clearing brokers have records of all customer activity that has been submitted to them.

An overview of the Plans of our clearing brokers can be found online at the following web sites:

TYPES OF DISRUPTIONS
Lime’s Plan foresees three general classes of business disruptions:

  1. Significant but not catastrophic disruption at Lime’s main office
  2. Catastrophic disruption at Lime’s main office
  3. City-wide, regional or other disruption that temporarily limits access to and/or the functioning of the Lime main office and data center (“Office”)

Significant but not Catastrophic Disruption at Lime’s Office
Lime has generally designed its systems, procedures and personnel structure such that there is redundancy and cross-capability. Limited disruptions affecting communications lines, computer hardware, or other related systems typically can be addressed through use of redundant systems with similar capability which are available both in our main data center, and at our Waltham DRS. As necessary, control of the Lime Trading System will be shifted to the DRS.

Catastrophic Disruption at Lime’s Office
The Company’s response to a catastrophic disruption at our Office will depend on the extent of the damage. In the event of a total loss of Lime’s Office, control of the Lime Trading System will be shifted to the DRS. To the extent that the DRS is not able to assume the data-processing duties of Lime’s main office, we will coordinate with our clearing firm to permit customers to close out open positions. In addition, as communications permit, we will inform our customers what alternatives they have to send their orders to us.

Beyond the initial aftermath of the total loss of Lime’s Office, the Company would evaluate the nature of the disruption, the availability of our systems and personnel, our financial condition, the condition of the national and global financial markets, and other factors, as appropriate, to determine whether to restore full brokerage operations or to discontinue brokerage operations and assist costumers in transferring their accounts elsewhere.

City-Wide, Regional or Other Disruption that Temporarily Limits Access and/or the Functioning of the Lime Office
For a city-wide, regional or other disruption that temporarily limits access to and/or the functioning of the Lime Office, the Company’s response would vary dependent upon the exact nature of the disruption and its impact on the financial markets and our DRS. These types of disruptions include the Company having to evacuate the Office temporarily due to a bomb threat or smoke damage on another floor. Lime’s response would be similar to a catastrophic disruption to the Lime offices; however, restoration of full services would be quicker, but resumption time is dependent upon the exact nature of the disruption.

ONGOING ENHANCEMENTS
The disaster recovery site is in a geographically separate location and is intended to be able to assume the functions of our main data center in the event that it is incapacitated for any reason. We are continually devoting substantial resources to the enhancement of our disaster preparedness and business continuity planning. Please contact Lime at (212) 824-5000 for further details about the disaster recovery center’s capabilities. Lime’s Business Continuity Plan, including this disclosure, will be amended to reflect new capabilities and enhancements.

DISCLAIMERS
There are innumerable potential causes of a business disruption, and the events that cause them may vary significantly in nature, size, scope, severity, duration and geographic location, and will result in distinct degrees of harm to human life; firm assets; the banks, exchanges, securities firms and ECNs with which the firm conducts business; and local, regional and national systems infrastructure (e.g., telecommunications, Internet connectivity, power generation and transportation) that could affect Lime’s recovery in a variety of ways. Lime reserves the right to flexibly respond to business disruptions in a situation-specific manner which the Company deems appropriate.

Nothing in this document is intended to provide a guarantee or warranty regarding the actions or performance of Lime Brokerage LLC, its computer systems, or its personnel in the event of a significant business disruption.

Lime may modify its Disaster Recovery and Business Continuity Plan and this disclosure at any time. The Company will post updates to this disclosure on our website.