THE CHARACTERISTICS & RISKS OF STANDARDIZED OPTIONS
Options involve risk and are not suitable for all market participants. Prior to buying or selling an option, a person should review the Characteristics and Risks of Standardized Options (ODD), which is required to be provided to all such persons. Copies of the ODD are available from your broker or from The Options Clearing Corporation, 125 S. Franklin Street, Suite 1200, Chicago, IL 60606.
Trading FLEX options may not be suitable for all options-qualified market participants. FLEX options strategies only should be considered by those with extensive prior options trading experience.
Uncovered option writing is suitable only for the knowledgeable market participant who understands the risks, has the financial capacity and willingness to incur potentially substantial losses, and has sufficient liquid assets to meet applicable margin requirements. In this regard, if the value of the underlying instrument moves against an uncovered writer’s options position, the writer may incur large losses in that options position and the participant’s broker may require significant additional margin payments. If a market participant does not make those margin payments, the broker may liquidate positions in the market participant’s account with little or no prior notice in accordance with the market participant’s margin agreement.
EXCEED GENERAL DISCLOSURES
Exceed Holdings LLC (“Exceed”) is the parent company of the following entities, some of which are regulated by federal securities laws.
Exceed Advisory LLC is a registered investment advisor that seeks to offer investment services and products.
Exceed Investments is the brand name under which Exceed and its subsidiaries operate.
FIRM COMPENSATION
Exceed Advisory LLC seeks to earn revenue by charging a management fee. Exceed follows regulatory requirements concerning any fees charged to you and in reporting transaction fees to you.
IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT
USA PATRIOT Act
The USA PATRIOT Act is designed to detect, deter, and punish terrorists in the United States and abroad. The Act imposes anti-money laundering requirements on brokerage firms and financial institutions.
ANTI-MONEY LAUNDERING REQUIREMENTS
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.
What this means for you: When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.
What is money laundering?
To help you understand these efforts, we want to provide you with some information about money laundering and our steps to implement the USA PATRIOT Act. Money laundering is the process of disguising illegally obtained money so that the funds appear to come from legitimate sources or activities. Money laundering occurs in connection with a wide variety of crimes, including illegal arms sales, drug trafficking, robbery, fraud, racketeering, and terrorism.
How big is the problem and why is it important?
The use of the U.S. financial system by criminals to facilitate terrorism or other crimes could well taint our financial markets. According to the U.S. State Department, one recent estimate puts the amount of worldwide money laundering activity at $1 trillion a year.
What are we required to do to eliminate money laundering?
Under the USA PATRIOT Act, our anti-money laundering program must designate a special compliance officer, set up employee training, conduct independent audits, and establish policies and procedures to detect and report suspicious transactions and ensure compliance with the new laws. As part of our required program, we may ask you to provide various identification documents or other information. Until you provide the information or documents we need, we may not be able to open an account or effect any transactions for you.
We thank you for your patience and hope that you will support us in our efforts to deny terrorist groups access to America’s financial system.
BUSINESS CONTINUITY PLAN DISCLOSURE
Exceed has established a company-wide business continuity planning program to assess and manage the effects of a significant emergency disruption on its business operations in an effort to provide continuity of critical business functions. Such critical business functions include communicating with customers regarding their transactions.
Consistent with regulatory requirements, the Company provides this disclosure statement to its clients summarizing the program. Due to the proprietary nature of some information, detailed plans for the program cannot be publicly disseminated.
The business continuity planning program begins with each business units’ assessment of its business continuity risk. This process encompasses all aspects of the Company’s key business functions. The assessment defines, for each business process, its criticality and a method for recovery. Individual business unit plans are reviewed and updated annually, or as significant business changes occur.
The Plan is designed to account for the actions the Company will take in the event of disruptions of varying scope. This includes incidents involving a single office building where any of the Company’s offices may reside, city-wide or regional events of disruption. It also includes a plan for people loss, where staff members may be unable to work at their normal business location. The Plan has been reasonably designed to allow the Company to continue its business, likely at a reduced capacity, and safeguard the interests of our customers. The Company expects to be able to meet its client obligations within the business day.
While the Company’s business continuity plan has been reasonably designed to allow the Company to operate during emergency incidents of varying scope, such potential incidents are unpredictable. The Company has no control over certain infrastructure such as utilities, communication networks, transportation, and third party providers that the Company may rely upon during an emergency. Because of the unpredictable and unknown nature of a potential future business disruption, the Company cannot guarantee that our systems will always be available or able to be recovered in the event of a serious emergency disruption.
Please note that the Company’s business continuity plan is subject to change and modification. You may obtain updated summaries of the plan by contacting us at the following telephone number or address:
Exceed Investments LLC, 79 Madison Avenue, 3rd Floor, New York, NY 10016, 646-580-7046
All material or information shared herein is for informational or educational purposes only. Nothing on this web site shall constitute an offer or solicitation to purchase or sell any securities or funds. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation. Performance returns do not reflect any management fees, transaction costs or expenses. This material contains general information only and is not intended to represent general or specific investment advice. This material may contain forward-looking statements which involve certain risks and uncertainties. The information contained in the material provided on this web site are derived from proprietary and nonproprietary sources deemed to be reliable, but may not necessarily be all-inclusive and are not guaranteed as to accuracy. No part of this material may be reproduced without prior written consent of Exceed Investments.
Exceed Advisory LLC are wholly owned subsidiaries of Exceed Holdings LLC, 79 Madison Avenue 3rd Floor, New York, NY 10016
