Legal
Aritas Securities LLC ("Aritas") is registered with the SEC as a broker/dealer and operates an Alternative Trading System (the "System").
Aritas is a member in good-standing with FINRA, the Financial Industry Regulatory Authority, Inc. The main FINRA telephone number is (301) 590-6500 and the website address is www.finra.org.
Aritas is a member of Securities Investor Protection Corporation ("SIPC"). The SIPC telephone number is (202) 371-8300 and the website address is www.sipc.org.
Aritas maintains offices in the cities of New York and San Francisco. Aritas' Supervisory Branch Office is located at 60 E. 42nd Street, New York, NY, 10165, Telephone (212) 370-8336. Aritas is a fully-disclosed introducing broker; we clear our transactions through Pershing LLC, Clearing House Number 0443.
Customer complaints should be directed to the following:
Aritas Securities LLC
Attn: Jaclyn Bowdren
60 E. 42 nd Street, Suite 624
New York, NY 10165
Compliance Department: (212) 370-8352.
Aritas may, in its sole and reasonable discretion, halt or suspend trading on the System, halt or suspend activity in any security on the System or make modifications to the System. All orders entered into the System are considered "not held" and "non-directed;" orders specifically designated to the contrary are rejected upon receipt. Aritas may cancel transactions executed through the System if Aritas determines in its sole and reasonable discretion that such transaction was clearly erroneous. Aritas provides access to the System to professional investors at both institutions and brokerages. Brokerages may subsequently provide System access to their customers, including customers who may be affiliates of Aritas Securities Group LLC such as investors in Aritas Securities LLC, its parent Aritas Group, Inc., and the general and limited partners of such investors.
Aritas maintains a robust Business Continuity Plan and an AML and related programs as required by the USA Patriot Act. Both these programs have been reviewed and attested to by a qualified third party as required by industry regulation. Additional details concerning these programs are available through our Compliance Department which can be reached at (212) 370-8352.
Unless otherwise stipulated in a duly executed agreement between Aritas and a customer, ARITAS AND ITS EMPLOYEES, AGENTS AND AFFILIATES SHALL NOT BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES OR LOSS OF PROFITS, LOSS OF USE, LOSS OF COST OR OTHER SAVINGS OR COSTS AND EXPENSES OF ANY NATURE OR FROM ANY CAUSE WHATSOEVER INCURRED BY CUSTOMER, ARISING OUT OF CUSTOMER'S USE OF, OR INABILITY TO USE, THE SYSTEM.
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Annual Disclosure to Subscribers 2011
Exchange Act Rule 607 — Order Routing Practices
In deciding where to send orders received for execution, Aritas looks at a number of factors, such as size of the order, trading characteristics of the security, favorable execution prices (including the opportunity for price improvement), access to reliable market data, availability of efficient automated transaction processing and execution cost, including the opportunity to receive liquidity-provider rebates or achieve breakpoints. Some market centers or broker-dealers may execute orders at prices superior to the publicly quoted market. Aritas' order routing policies are designed to result in transaction processing that is favorable to its customers. Where a customer directs the market center to which an order is routed, Aritas will route the order to such market center in accordance with the customer's instructions without regard to its general order-routing practices. Aritas treats all orders routed directly to its alternative trading system by its client, whether through use of an alternative trading system-specific order type or otherwise, as directed orders. Aritas treats all orders received by it as "not held" orders. Orders designated as "held" will be rejected by Aritas. Aritas treats the time in force for "Day" orders as 09:30 to 16:00 ET, on a normal trading day. All orders are cancelled at end of day.
Aritas receives remuneration, compensation, or other consideration for directing customer orders to certain market centers. Such consideration may take the form of liquidity provider rebates or other financial credits, monetary payments, volume discounts or reciprocal business. The details of any credit, payment, rebate or other form of compensation received in connection with the routing of a particular order will be provided upon your request.
Exchange Act Rule 606 — Order Routing Disclosure
Aritas will, at your request, provide information regarding the venue(s) to which your non-directed orders in NMS stocks were routed for execution, as well as the time of any executions of such orders, for a period up to six months prior to the subscribers' request. Aritas also prepares quarterly reports on its routing of non-directed orders in NMS stocks. The reports are available at:
http://www.aritasgroup.com/Rule_606/
Written requests should be sent to:
Compliance
Aritas Securities LLC
60 East 42nd Street, Suite 624
New York, NY 10165
Sell Long/Sell Short
By entering an order to sell long a security, the subscriber is representing to Aritas that the subscriber owns, and is net long, the security sold and will deliver the security in good deliverable form by settlement date. If delivery is not made by settlement date (fails), Aritas reserves the right to close the transaction, without prior notice, by instructing our clearing agent to purchase like securities for the client's account and at the client's risk.
For sell short transactions, Aritas only accepts transactions where the client has indicated that it has made arrangements to borrow the security from an identified third party. Aritas will reject all orders that require Aritas to arrange to borrow shares on behalf of the client. The client is required to supply Aritas with any information it may reasonably request to ensure compliance with the SEC's Regulation SHO. If the delivery is not made by settlement date (fails), Aritas reserves the right to close the transaction, without prior notice, by instructing our clearing agent to purchase like securities for the client's account and at the client's risk.
Business Continuity Plan
Aritas Securities LLC has developed a Business Continuity Plan for how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, we are providing you with this information on our business continuity plan.
Contacting Us — After a significant business disruption you can contact us as you usually do at (800) 680-7473 or 212-370-8211.For further information you can visit our website www.aritasgroup.com. If you cannot access us through either of those means, you should contact our clearing firm, Pershing LLC, at 201-413-3635 and www.Pershing.com for instructions on how it may provide prompt access to funds and securities.
Our Business Continuity Plan — We plan to quickly recover and resume business operations after a significant business disruption and respond by safeguarding our employees and property, making a financial and operational assessment, protecting the firm's books and records, and allowing our customers to transact business. In short, our business continuity plan is designed to permit our firm to resume operations as quickly as possible, given the scope and severity of the significant business disruption.
Our business continuity plan addresses: data back-up and recovery; all mission critical systems; financial and operational assessments; alternative communications with customers, employees, and regulators; alternate physical location of employees; critical supplier, contractor, bank and counter-party impact; regulatory reporting; and assuring our customers prompt access to their funds and securities if we are unable to continue our business.
Our clearing firm, Pershing LLC, backs up our important records in a geographically separate area. While every emergency situation poses unique problems based on external factors, such as time of day and the severity of the disruption, we have been advised by our clearing firm that its objective is to restore its own operations and be able to complete existing transactions and accept new transactions and payments within 4 hours. Requests for funds and securities could be delayed during this period.
Varying Disruptions — Significant business disruptions can vary in their scope, such as only our firm, a single building housing our firm, the business district where our firm is located, the city where we are located, or the whole region. Within each of these areas, the severity of the disruption can also vary from minimal to severe. In a disruption to only our firm or a building housing our firm, we will transfer our operations to a local site when needed and expect to recover and resume business within 4 hours. In a disruption affecting our business district, city, or region, we will transfer our operations to a site outside of the affected area, and recover and resume business within 24 hours. In either situation, we plan to continue in business, and notify you through our web site www.aritasgroup.com or our customer emergency number, (800) 680-7473 or 212-370-8211 on how to contact us. If the significant business disruption is so severe that it prevents us from remaining in business, we will assure our customer's prompt access to their funds and securities via Pershing LLC.
For more information — If you have questions about our business continuity planning, you can contact us at 212-370-8336.
FINRA BrokerCheck
FINRA BrokerCheck, formally known as the FINRA's Public Disclosure Program, allows investors to learn about the professional background, business practices, and conduct of FINRA member firms or their brokers. The telephone number of the FINRA BrokerCheck is 800-289-9999, the website address http://www.FINRA.org. An investor brochure is also available upon request.
FINRA Rule 2266 – SIPC Account Protection
Aritas is a member of the Securities Investor Protection Corporation ("SIPC"). You may obtain information about SIPC and a copy of the SIPC brochure by contacting SIPC at:
Securities Investor Protection Corporation
805 15th St. NW, Suite 800
Washington, DC 20005-2215
Tel: (202) 371-8300
Fax: (202 371-6728
Email: asksipc@sipc.org
SIPC's website is www.sipc.org
Customer Complaints
Any Complaints regarding Aritas can be sent to:
Aritas Securities LLC
Attn: Compliance Department
60 East 42nd Street, Suite 624
New York, NY 10165
Customer Identification Program Notice
Important Information about Aritas Securities LLC Subscriber Verification Policy
Aritas supports the U.S. Government's initiative to fight the funding of terrorism and money laundering activities. Federal law requires financial institutions to verify and record information that identifies each entity that becomes a client of Aritas Securities LLC. We are required to establish a Customer Identification Program and wish to advise you of the nature of the program. A corporation, partnership, trust, an investment company, hedge fund or other legal entity may need to provide information, such as its principal place of business, local office, and employer identification number. If circumstances warrant we may request, certified articles of incorporation, government-issued business license, partnership agreement, trust agreement or subscription agreement. Hedge funds may be asked for a prospectus, offering document or other documentation describing the fund or its principles.
U.S. Department of the Treasury, Securities and Exchange Commission and FINRA rules already require most of this information be provided when becoming a subscriber with our firm.
Aritas Securities LLC is a member of FINRA and SIPC.
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