Business Continuity Disclosure

A.B. Watley Direct, Inc. has developed a business continuity plan that will be activated in the event of a significant business disruption, such as a natural disaster, power outage or other event leading to an interruption of our normal services. Our plan is intended to permit us to continue critical business operations during these types of disruptions.

Our plan addresses the actions that we will take in the event that the significant disruption affects a single building, a business district, a citywide area, or an entire region. We have different planned recovery times depending on the severity of the significant business disruption. Most of our plans call for recovery times within minutes from the significant business disruption. For the most significant business disruption scenario that we have addressed, account access is planned to be available within minutes and all critical business operations would be resumed within 48 hours. The specifics of our disaster recovery plan are subject to modification.

To support our planned recovery times, our providers maintain back-up facilities, including secondary data centers. The back-up facilities are located well away from our primary facilities as well as, well away from our providers` facilities, in order to diminish the affect of a regional disruption. Account access would be available through the data center or back-up facility of our clearing agents.

A copy of our current disaster recovery plan is available by written request. Our plan will be reviewed, updated and tested periodically.

Our clearing brokers also have business continuity plans. Penson's can be accessed online.

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