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Business Continuity Plan (BCP)

I.    Emergency Contact Persons

Our firm’s emergency contact persons are:

Darren Day (858) 617-6400  dday@alaristrading.com
Noel Peters (201) 377-1200  npeters@alaristrading.com
Mark McGoldrick (617) 835-5012, mark@alaristradin.com
Jeffery Alcheh (845) 634-6978 jalcheh@alaristrading.com   

These names will be updated in the event of a material change, and our Executive Representative will review them within 17 business days of the end of each quarter.  Our firms FinOp is Maria Li (201) 809-7171.

Rule:  NASD Rule 3520.

II.     Firm Policy

Our firm’s policy is 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.  In the event that we determine we are unable to continue our business, we will assure customers prompt access to their funds and securities.  

A.    Significant Business Disruptions (SBDs)

Our plan anticipates two kinds of SBDs, internal and external.  Internal SBDs affect only our firm’s ability to communicate and do business, such as a fire in our building.  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.  Our response to an external SBD relies more heavily on other organizations and systems.  

Approval and Execution Authority

Darren Day, a registered principal, is responsible for approving the plan and for conducting the required annual review.  Darren Day has the authority to execute this BCP.

B.    Plan Location and Access

Our firm will maintain copies of its BCP plan and the annual reviews, and the changes that have been made to it for inspection. 

III.    Business Description

Our firm offers general securities to institutional clients on a fully disclosed basis through Goldman Sachs. 

IV.    Office Locations

Our Firm has one office located at 2002 Jimmy Durante Blvd. Suite 410. Del Mar, CA. 92014.  Its main telephone number is (858) 617-6400. Alaris has another office at 15 Exchange Pl. Suite 720. Jersey City, NJ 07302.  The phone number for the East coast office is (201) 377-1200.  Our employees may travel to that office by means of foot, car, and bus. 

V.    Alternative Physical Location(s) of Employees

In the event of an SBD, we will move our staff from affected offices to the closest of our unaffected office locations.  If our office locations are not available to receive those staff, we will move them to office the home office of Darren Day or Patrick Boyle, Managing Members of Alaris Trading Partners.  

Rule:  NASD Rule 3510(c)(6).

VI.     Customers

Access to Funds and Securities

In the event of an internal or external SBD, if telephone service is available, our registered persons will take customer instructions.  If Web access is available, our firm will post on our Web site that customers may access their funds and securities by contacting Darren Day at (858) 617-6400.  In the event of an emergency or significant business disruption, clients of Alaris may contact the Alaris clearing firm.  Goldman Sachs Execution and Clearing- John Sobral at (212) 357-9630.

•    Trading

Mission critical systems are considered to be the Direct Market Access trading systems provided by Goldman Sachs and Bank of America Securities (RediPlus and Alaris Trader).  In the event of an SBD preventing clients’ electronic access to trading software clients are instructed to contact the Alaris Help Desk (858) 617-6402 or RediPlus Help Desk (212) 357-3032 to place trades.  Clients are instructed to provide the appropriate help desk with their client account number.

•    Clearing

Domiciled clients who cannot access account information electronically due to a SBD may contact either the Alaris Help Desk (858) 617-6400 or GSEC clearing Goldman Sachs Execution and Clearing- John Sobral at (212) 357-9630.Clients are instructed to identify themselves by providing the following client account information: Account Number, Tax ID, Clearing contact, (if not a domiciled client).

If SIPC determines that we are unable to meet our obligations to our customers or if our liabilities exceed our assets in violation of Securities Exchange Act Rule 15c3-1, SIPC may seek to appoint a trustee to disburse our assets to customers.  We will assist SIPC and the trustee by providing our books and records identifying customer accounts subject to SIPC regulation.

Rules:  NASD Rule 3510(a); Securities Exchange Act Rule 15c3-1; 15 U.S.C. 78eee (2003).

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

Our firm maintains its primary hard copy books and records and its electronic records at the San Diego office, the electronic records are backed up daily on a off site main frame server.  All company and client data is backed up and is available via remote connection. Trade related activity stored at our clearing firm in New Jersey.  Darren Day is responsible for the maintenance of these books and records.  

Our firm maintains its back-up hard copy books and records at the East Coast location. Additionally, financial information is backed up and maintained in Maria Li’s office. These records are kept in electronic format.  Darren Day is responsible for the maintenance of these back-up books and records.  Our firm backs up its paper records by copying and taking them to our back-up site.  We back up our records every month.

In the event of an internal or external SBD that causes the loss of our paper records, we will physically recover them from our back-up site.  If our primary site is inoperable, we will continue operations from our back-up site or an alternate location.  For the loss of electronic records, we will either physically recover the storage media or electronically recover data from our back-up site, or, if our primary site is inoperable, continue operations from our back-up site or an alternate location.

Rule:  NASD Rule 3510(c)(1).

VIII.    Financial and Operational Assessments

A.    Operational Risk

In the event of an SBD, we will immediately identify what means will permit us to communicate with our customers, employees, critical business constituents, critical banks, critical counter-parties, and regulators.  Although the effects of an SBD will determine the means of alternative communication, the communications options we will employ will include our telephone and email In addition, we will retrieve our key activity records as described in the section above, Data Back-Up and Recovery (Hard Copy and Electronic).

Rules:  NASD Rules 3510(c)(3) & (f)(2).


B.    Financial and Credit Risk

In the event of an SBD, we will determine the value and liquidity of our investments and other assets to evaluate our ability to continue to fund our operations and remain in capital compliance.  We will contact critical banks, and investors to apprise them of our financial status.  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 bank or other credit sources to fulfill our obligations to our customers and clients.  If we cannot remedy a capital deficiency, we will file appropriate notices with our regulators and immediately take appropriate steps.

Rules:  NASD Rules 3510(c)(3), (c)(8) & (f)(2).

IX.    Alternate Communications Between the Firm and Customers, Employees, and Regulators

A. Customers

We now communicate with our customers using the telephone, e-mail, our Web site, fax, U.S. mail, and in person visits at our firm or at the other’s location.  In the event of an SBD, we will assess which means of communication are still available to us, and use the means closest in speed and form (written or oral) to the means that we have used in the past to communicate with the other party. For example, if we have communicated with a party by e-mail but the Internet is unavailable, we will call them on the telephone and follow up where a record is needed with paper copy in the U.S. mail.  

Rule:  NASD Rule 3510(c)(4).

B.  Employees

We now communicate with our employees using the telephone, e-mail, and in person.  In the event of an SBD, we will assess which means of communication are still available to us, and use the means closest in speed and form (written or oral) to the means that we have used in the past to communicate with the other party. We will also employ a call tree so that senior management can reach all employees quickly during an SBD.  The call tree includes all staff home and office phone numbers.  We have identified persons, noted below, who live near each other and may reach each other in person:

The person to invoke use of the call tree is: Darren Day
Caller    Call Recipients
Darren Day    
    Jeff Alcheh
    Patrick Boyle
    Mark McGoldrick
    Danielle Jansen
    John Miceli
    

Rule:  NASD Rule 3510(c)(5).

C.  Regulators

We are currently members of the following SROs: NASD,SEC and Various States where the firm is registered.  We communicate with our regulators using telephone, e-mail, fax, U.S. mail, and in person.  In the event of an SBD, we will assess which means of communication are still available to us, and use the means closest in speed and form (written or oral) to the means that we have used in the past to communicate with the other party.  Contact  NASD-Los Angeles 300 South Grand Ave 16th Fl
Los Angeles, CA 90071.  Peggy O’Reilly  (213) 617-3299.

Rule:  NASD Rule 3510(c)(9).

X.    Critical Business Constituents, Banks, and Counter-Parties

A.    Business constituents

We have contacted our critical business constituents (businesses with which we have an ongoing commercial relationship in support of our operating activities, such as vendors providing us critical services), and determined the extent to which we can continue our business relationship with them in light of the internal or external SBD.  We will quickly establish alternative arrangements if a business constituent can no longer provide the needed goods or services when we need them because of a SBD to them or our firm.  
Contact  Goldman Sachs Execution and Clearing 30 Hudson Street, 9th Floor  Jersey City, NJ  07302   John Sobral  (212) 357-9630.

Rules:  NASD Rule 3510(c)(7).

B.    Banks

We have contacted our banks and lenders to determine if they can continue to provide the financing that we will need in light of the internal or external SBD.  


Rules:  NASD Rule 3510(c)(7).

C.    Counter-Parties

 We have contacted our critical counter-parties, such as institutional customers, to determine if we will be able to carry out our transactions with them in light of the internal or external SBD.  Where the transactions cannot be completed, we will contact those counter-parties directly to make alternative arrangements to complete those transactions as soon as possible.

Rules: NASD Rules 3510(a) & (c)(7).

XI.    Regulatory Reporting

Our firm is subject to regulation by: SEC, NASD and Various States where the firm is registered.  We now file reports with our regulators using paper copies in the U.S. mail, and electronically using fax, e-mail, and the Internet.  In the event of an SBD, we will check with the SEC, NASD, and other regulators to determine which means of filing are still available to us, and use the means closest in speed and form (written or oral) to our previous filing method.  In the event that we cannot contact our regulators, we will continue to file required reports using the communication means available to us.  

Rule:  NASD Rule 3510(c)(8).

XII.    Disclosure of Business Continuity Plan

We provide our new clients with a BCP disclosure statement upon the opening of an account.  Additionally, we send existing clients a BCP disclosure statement annually.   

Rule:  NASD Rule 3510(e).

XIII.    Updates and Annual Review

Our firm will update this plan whenever we have a material change to our operations, structure, business or location.  In addition, our firm will review this BCP annually, by December 31 to modify it for any changes in our operations, structure, business, or location.

Rule:  NASD Rule 3510(b).

XIV.    Senior Manager Approval

I have approved this Business Continuity Plan as reasonably designed to enable our firm to meet its obligations to customers in the event of an SBD.    

Rule:  NASD Rule 3510(d).

Signature:	Darren Day
Title:	President
Date:	January 1, 2008