Stock Market Volatility Disclosure

Recent events show that the way some stocks are traded is changing dramatically, and the change in trading methods may affect price volatility and cause increased trading volume. This price volatility and increased volume present new hazards to investors, regardless of whether trading occurs on-line or otherwise.

High volumes of trading at the market opening or intra-day may cause delays in execution and executions at prices significantly away from the market price quoted or displayed at the time the order was entered. Market Makers may execute orders manually or reduce their size guarantees during periods of volatility, resulting in possible delays in order execution and losses. Consequently, investors may receive executions away instead of at or near the quotes displayed on their computer screens.

There is a difference between market and limit orders. Firms are required to execute a market order fully and promptly without regard to price and that, while a customer may receive a prompt execution of a market order, the execution may be at a price significantly different from the current quoted price of that security. Limit orders will be executed only at a specified price or better and that, while the customer receives price protection, there is the possibility that the order will not be executed.

Customers experiencing any inability to place orders online should immediately contact us at the following:

Customer Service: (888) 781-0283 or (415) 733-3032
Customer Service Fax: (415) 520-5633
Customer Service Email: Service@NewedgeGroup.com
San Francisco Main Number: (415) 733-3000
Chicago: (312) 422-2300
Philadelphia: (215) 981-1434
New York: (646) 557-7532

Newedge USA, LLC may raise margin requirements for volatile stocks. The rationale for raising maintenance margin is to help ensure that the equity in a customer’s margin account is sufficient to cover large changes in the price of a stock. Increasing maintenance margin requirements protects both the firm and customers by ensuring that investors have more equity in their margin accounts as protection in case of a large change in the value of a stock, which reduces the likelihood that the firm will have to liquidate assets in the customer’s account to meet a margin call. Newedge USA, LLC evaluates stocks for more stringent maintenance margin requirements by examining price fluctuations, market capitalization, and volatility.