Trading Direct is a division of York Securities, Inc., who is a member of the Securities Investor Protection Corporation (SIPC). Accounts are carried by the clearing firm, Pershing, LLC, member SIPC.
As a member of the Securities Investor Protection Corporation (SIPC), funds are available to meet customer claims up to a ceiling of $500,000, including a maximum of $250,000 for cash claims. For additional information regarding SIPC coverage, including a brochure, please contact SIPC at (202) 371-8300 or visit www.sipc.org.
What kind of SIPC and Excess SIPC coverage does Pershing offer for client accounts?
The Protection of Client Assets Remains at the Center of Our Focus
Pershing LLC (Pershing), a BNY Mellon company, has been a leading global provider of financial business solutions for over 75 years and serves many of the world's most respected financial organizations. We remain committed to the safekeeping, servicing, segregation and reporting of our global client assets.
Financial Strength—December 31, 2016
Pershing's core financial strength provides the first measure of protection for our global client assets. Our parent company, BNY Mellon, is a leading provider of financial services for institutions, corporations and high-net-worth individuals. While financial strength does not protect against loss due to market fluctuation, our internal controls and regulatory oversight help provide stability and focus.
Pershing, a BNY Mellon company
· Approximately $1.5 trillion in global client assets*
· Net capital of approximately $2 billion—well above the minimum requirement
*Pershing LLC and its global affiliates
· $29.9 trillion in assets under custody and/or administration
· $1.6 trillion in assets under management
Segregation and Control of Assets
Pershing’s core financial strength provides the first measure of protection for our global client assets. Our parent company, BNY Mellon is the world’s largest global custodian.4 While financial strength does not protect against loss due to market fluctuation, our internal controls and regulatory oversight help maintain our stability and focus. Pershing protects client assets through rigorous internal control measures. An annual audit by a major independent audit firm and the audit team at our parent company, BNY Mellon, helps to monitor controls that are in place. In addition, a Service Organizations Control report conducted by an independent audit firm provides additional evaluation of the design and operating effectiveness of Pershing’s internal controls.
Clients’ fully paid-for assets are segregated from our own, with quarterly vault inspections conducted. In addition, we segregate cash and/or qualifying securities in special reserve bank accounts for the exclusive benefit of clients, to protect clients’ funds in the unlikely event of Pershing’s failure and liquidation.
Pershing is a FINRA member broker-dealer registered with the U.S. Securities and Exchange Commission, in all 50 states as well as the District of Columbia and Commonwealth of Puerto Rico, and certain foreign jurisdictions.
Securities Investor Protection Corporation (SIPC®) Coverage
Pershing is a member of the SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at sipc.org.
Excess of SIPC Coverage Through Underwriters at Lloyd's and Other Commercial Insurers
In addition to SIPC protection, Pershing provides coverage in excess of SIPC limits from certain underwriters in Lloyd's insurance market and other commercial insurers. The excess of SIPC coverage is valid through February 10, 2018 for Pershing LLC accounts. It provides the following protection for Pershing LLC's global client assets:
· An aggregate loss limit of $1 billion for eligible securities—over all client accounts
· A per-client loss limit of $1.9 million for cash awaiting reinvestment—within the aggregate loss limit of $1 billion
SIPC and the excess of SIPC coverage do not protect against loss due to market fluctuation.
An excess of SIPC claim would only arise if Pershing failed financially and client assets for covered accounts—as defined by SIPC—cannot be located due to theft, misplacement, destruction, burglary, robbery, embezzlement, abstraction, failure to obtain or maintain possession or control of client securities, or to maintain the special reserve bank account required by applicable rules.
Lloyd's currently holds an A+ rating from Standard & Poor's® (S&P®), an A rating from A.M. Best and an AA- rating from Fitch. These ratings are based on the financial strength of the company and are subject to change by the rating agencies at any time.1 For more information about Lloyd's, please see lloyds.com.
1 Ratings as of December 2016.
Information contained in above table was obtained from https://www.pershing.com/about/strength-and-stability, and is © 2017 Pershing LLC. All rights reserved. Pershing LLC is a wholly owned subsidiary of The Bank of New York Mellon Corporation (BNY Mellon). Pershing LLC, member FINRA, NYSE, SIPC. Trademarks belong to their respective owners.
The Securities Investor Protection Corporation (SIPC) is a non-profit organization established by the Congress of the United States to insure client accounts against the failure of member brokerage firms. You can obtain more information by visiting http://www.sipc.org.
Frequently Asked Questions
Q: How is my customer’s account protected with "excess SIPC" coverage?
A: Customer accounts are protected in the event that SIPC limits are exhausted. The additional insurance becomes effective after the implementation of SIPC coverage. The coverage is in place to protect the customer in the event of a theft, misplacement, destruction, burglary, embezzlement or abstraction of customer securities. It does not protect the customer from declining changes in market value.
Q: What triggers SIPC and "excess SIPC" coverage?
A: Three things must happen for SIPC and "excess SIPC" coverage to be triggered:
• There is a financial failure and a liquidation of the carrying Broker Dealer
• Securities/Cash are missing from an account
• SIPC pays each client in accordance with their pro-rated share of the loss, up to $500,000 per account (of which $250,000 may be cash)