MJ Whitman LLC - Disclosures & Policies

Order routing disclosure report Q4 2017
Options Risk Disclosure


MJ Whitman LLC respects your right to privacy. We also know that you expect us to conduct and process your business in an accurate and efficient manner. To do so, we must collect and maintain certain personal information about you. This is the information we collect from you on applications or other forms and from the transactions you make with us, our affiliates, or third parties. MJW does not disclose any information about you or any of our former customers to anyone, except to our affiliates and service providers, or where required to by law. To protect your personal information, we permit access only by authorized employees. Be assured that we maintain procedural safeguards that comply with all regulatory standards in order to guard your personal information.


MJ Whitman LLC email communication is for informational purposes only. All market prices, data and other information are not warranted as to completeness or accuracy and are subject to change without notice. Any comments or statements made herein do not necessarily reflect those of MJ Whitman LLC, its subsidiaries and affiliates. This transmission may contain information that is privileged, confidential, legally privileged, and/or exempt from disclosure under applicable law. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution, or use of the information contained herein (including any reliance thereon) is STRICTLY PROHIBITED. Although this transmission and any attachments are believed to be free of any defects that might affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is free of defects and no responsibility is accepted by MJ Whitman LLC, its subsidiaries and affiliates, as applicable, for any loss or damage arising in any way from its use. If you received this transmission in error, please immediately contact the sender and destroy the material in its entirety, whether in electronic or hard copy format.


A Sweep Account is an interest-bearing account for any un-invested cash that flows into your brokerage account from various sources. Cash is automatically swept daily into the Sweep Account, earning you interest at the stated rate, if any. When you are ready to use this cash for trading or for cash management activities, the necessary cash is automatically pulled from the Sweep Account.


You may or may not earn interest on un-invested cash balances in your brokerage account, therefore, MJ Whitman LLC (“MJW”) permits you to sweep those cash balances in various money market funds (“Sweep Products”) that are made available by our clearing firm, National Financial Services LLC. The Sweep Products offered may change or be replaced at any time. MJW will provide at least 30 calendar day notice regarding any such change in Sweep Products. You are required to notify MJW if you choose to change your Sweep Product option at any time. This requirement also applies in the case of a Sweep Product being made unavailable. If made unavailable, the Sweep Product in your account will be redeemed and held as cash until another option is chosen. Please understand that when you choose to invest in a Sweep Product, you are authorizing the redemption or reinvestment in those Sweep Products as necessary based on the activity in your account.

Account statements will reflect the transfer of any cash balance and/or Sweep Product transactions (including purchases, redemptions, dividends and dividend reinvestments). Account statements are provided in lieu of separate confirmations of Sweep Product transactions.


MJ Whitman LLC is committed to safeguarding the interests of our clients in the event of an emergency or significant business disruption. Our Business Continuity Plan Disclosure (“BCP”) summarizes MJW’s effort to mitigate risks inherent with unforeseen business interruptions. MJW’s BCP can be obtained upon request or viewed at our website, www.mjwhitman.com.


To help the U.S. government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. To comply, MJ Whitman LLC requires your name, address, date of birth and government-issued identification number (generally, a social security number) and other information that may help us identify you. We may ask for copies of related documentation and we may consult third-party databases to help verify your identity.


For information regarding transaction costs, please consult your MJW Registered Representative or see our website at www.mjwhitman.com.


MJ Whitman LLC does not engage in the practice of paying or receiving compensation for directing client transactions to any specific broker/dealer.

General Investment Risks

All securities trading, whether in stocks, bonds, options, or other investment vehicles, is speculative in nature and involves risk of loss. Past performance of any security does not predict future results. MJ Whitman LLC encourages you to consult with your MJW Registered Representative and to make independent investigations before investing. MJW does not guarantee the success of any investments. See below for risk considerations related to specific security types.

Risk Considerations of International Investing

Investing in international securities involves various risks which may be greater than when investing in U.S. securities markets. These risks include changes in currency exchange rates; political, economic and social events; potential for illiquid markets; less information; reliance on foreign legal remedies; and different market structures and operations. You should be sure to understand these risks before investing in foreign securities. As always, if you have any questions or concerns regarding any of your investments, please discuss with your MJW Registered Representative.

Risk Considerations of Structured Products Investing

This section describes some of the risk considerations that should be evaluated with respect to structured investments. This should not be considered a complete list of all possible risks associated with the multitude of structured investments that are currently available in the marketplace.

Among the risks involved in owning structured notes and CDs, these are some:

Risk of Loss: There is a risk of loss when investing in structured products and investors could lose the entire amount of their investment.

Complex Payout Structures: The payout structures for each product vary and are often complex.

Secondary Market Risk: Structured Products are considered long-term investments. There is liquidity risk when selling prior to maturity, as there may not be a liquid secondary market for the product. Additionally, the value of the investment may be worth less than the initial investment, irrespective of the structured payout at maturity.

Legal and Tax Considerations: There are legal risks involved with holding complex instruments, as regulatory and tax considerations may change during the term of the investment.

Fees: Investors should refer to the relevant offering documents for additional details regarding the fees and built-in costs, including information regarding how fees will reduce return on investment.

Counterparty Considerations:

Credit Risk - The creditworthiness of an issuer must be considered when investing in a principal protected or non-principal protected note, as structured notes are not guaranteed by the government, the underwriter or any other entity. A structured product represents an unsecured obligation of the respective issuer.

Bankruptcy Risk - An investor faces the risk of not receiving any payment on its investment if the relevant issuer files for bankruptcy or is otherwise unable to pay its debts.

Complex Features and Underlying Securities Considerations:

Market Risk - The value of the structured investment may depend upon the value of the underlying index or security. Investors do not directly participate in the returns of the underlying index or security.

Income Risk - Under certain structures, anticipated income may not be fixed or guaranteed and may be dependent upon the performance of an underlying index or security). Investors should review the offering documents to determine how distributions are calculated.

Payout Features - Depending upon the products structure, return at maturity may be in the form of a pre-determined number of shares in the underlying stock, rather than cash, and may be based on the performance of the underlying security or index. The market value of those shares may be substantially less than the principal amount of the notes and in certain cases may be zero. In some structures, investors may not participate in all or even a portion of any increase in value of the underlying security. Investors should review the offering documents to determine how the return on the structure is calculated.

Call Features - Structured notes may have early redemption rights for the issuer of the security, which if exercised would result in a required redemption prior to maturity and loss of any remaining coupon payments. It is likely that an early call by the issuer will be to the issuer’s advantage and to the disadvantage of the investor. In certain structures the call may occur automatically based on the performance of the underlying index or security.

Foreign Currency Risk - Investors may be exposed, directly or indirectly, to foreign currency risk due to any foreign currency, securities or commodities that may be linked to the respective structured product. The prices of non-U.S. currencies, commodities or securities may be greatly affected by economic, financial, political, and social factors in the home country of the securities issuer, including but not limited to, changes in the country’s government, legislation, economic and fiscal policies, currency exchange laws or other laws.

Past Performance is NOT indicative of Future Results - An underlying index (or security) can fall as well as rise.

Other Considerations:  Structured products are complex financial instruments and product features may greatly vary from product to product. Always thoroughly understand the product features and risks before investing.

Full disclosure of the risk factors for each product is available from the relevant term sheets and prospectuses or offering documents. Investors should consult their MJW Registered Representative and read all applicable offering documents before investing. Investors should carefully review the risk factors section in the relevant offering documents. Documents filed with the SEC are available on the SEC website at sec.gov.