| Understanding the Role of NFS |
Disclosure Required By New York Stock Exchange Rule 382
National Financial Services LLC ("NFS") is the New York Stock Exchange member carrying organization for Commerce Capital Markets, Inc. ("CCMI") with which you opened your securities account. CCMI is independent of NFS and retained NFS to provide certain record keeping and operational services, which may include execution and settlement of securities transactions, custody of securities and cash balances, and extension of credit on margin transactions. These services are provided under a written Clearing Agreement between NFS and CCMI. It is important that you understand the responsibilities of CCMI and NFS under the Clearing Agreement as outlined below.
CCMI is responsible for:
- The opening, approving, and monitoring of your account(s), including obtaining, verifying, and retaining your account information and documents ; accepting your account(s); and monitoring trading and other activity in your account(s).
- Determining whether any investment advice or recommendations given to you by your investment representative or its employees are suitable for you, and that those persons placing instructions for your account are authorized to do so. NFS will not give you advice about your investments and will not evaluate the suitability of investments made by you, your investment representative or any other party.
- The acceptance of orders and other instructions from you regarding your account, and for promptly and accurately transmitting those orders and instructions to NFS. Under normal circumstances, NFS will not accept orders or instructions directly from you. CCMI may send orders for the purchase or sale of securities to NFS for execution, or CCMI may execute the transaction and instruct NFS to post the execution to your account.
- Operating in compliance with all applicable laws, rules , and regulations relating to its own operations, the supervision of its sales representatives and other personnel, and the supervision of transactions and other activity in your account.
- Maintaining the required books and records with respect to the functions it performs.
- Investigating and responding to any questions or complaints you have about your account(s), confirmations, your periodic statement, or any other matter related to your account(s). CCMI will notify NFS with respect to matters involving services performed by NFS.
NFS is responsible, at the direction of CCMI, for:
- The execution, clearance, and settlement of securities transactions .
- Preparing and sending to you periodic statements of your account as well as confirmations of the transactions in your account(s) unless CCMI has undertaken to send confirmations. Certain information on your statements, such as prices and descriptions of securities, are obtained from third parties. For more specific pricing information, and prior to placing orders, NFS suggests that you contact CCMI. In some cases, CCMI may instruct NFS to post transaction or other information to your account. NFS does not independently verify such information. NFS provides to CCMI copies of each confirmation and statement sent to you.
- Custody (or safekeeping) of funds and securities delivered to NFS on your behalf or received by NFS in connection with transactions in your account(s). NFS’s handling of funds and securities which it holds or receives on your behalf is determined by the instructions given by CCMI.
- The receipt and delivery of funds and securities for your account in accordance with CCMI’s instructions. NFS is not responsible for any funds or securities, which are not actually delivered to it, or for any funds withdrawn from your account(s) by CCMI or its employees.
- The extension of margin credit in connection with buying or maintaining securities in your account(s). Prior to trading on margin, you must deliver to NFS through a completed margin account application agreement with NFS. You and are responsible to ensure that your margin accounts are at all times in compliance with Regulation T of the Federal Reserve Board, the rules of the New York Stock Exchange, Inc. and other self-regulatory organizations, and the house rules of NFS. These rules are exclusively for the protection of NFS, and to the extent permitted by law, NFS will not be liable to you for any failure to comply with these rules. In addition, NFS will not determine whether any extension or margin credit for which you apply or accept is suitable or appropriate for you. regularly receives from NFS information on the status of margin accounts and notice of changes in NFS’s house rules. CCMI is responsible for informing you of margin requirements of your account and how to comply with them. NFS has the right to take market action in your account if it does not meet margin requirements.
- Maintaining the required books and records with respect to the functions it performs.
For More Information
Please e-mail us or call Commerce Capital Markets at 1-888-751-9000.
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