FINRA/SIPC Notice


FINRA

Securities transactions are conducted through Proof Services LLC ("PSL"), a broker-dealer subsidiary of Proof Trading, Inc. Proof Services LLC is a member of FINRA and SIPC. Check the background of this Broker-Dealer and its registered investment professionals on FINRA's BrokerCheck.

FINRA's public disclosure program toll free hotline number is 1 (800) 289-9999 and FINRA's website address is: www.finra.org

SIPC Notice

All customers are advised that information about SIPC, including the SIPC brochure, may be obtained by contacting SIPC. SIPC may be contacted by phone, email or regular mail:

Securities Investor Protection Corporation
805 15th Street, N.W. Suite 800
Washington, D.C. 20005-2215
Tel: (202) 371-8300
Fax: (202) 371-6728
Email: asksipc@sipc.org

For more detailed information please visit the SIPC website at www.sipc.org.

CIP Notice

Notification that the Customer's identification will be verified.


To help the 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 or company who trades through Proof Services LLC.

What this means for you: When you apply to trade through Proof Services LLC, we will ask for the name of your entity, address, tax identification number and other information that will allow us to identify you. We may also ask to see your articles of incorporation, partnership agreement or other identifying documents.

BCP Disclosure Statement

Proof Services LLC ("PSL" or the "Firm") has developed a Business Continuity Plan ("BCP") for how the Firm will respond to events that significantly disrupt its business. Since the timing and impact of disasters and disruptions is unpredictable, the Firm will have to be flexible in responding to actual events as they occur. With that in mind, the Firm is providing you with this information on the Firm's BCP.


Contacting PSL

If, after a significant business disruption ("SBD"), you cannot contact PSL as you usually do, you should email the Firm's general account psl@prooftrading.com, and appropriate employees will be notified. Alternatively, or in the event of a disruption in email, you should call Daniel Aisen, the Firm's Chief Executive Officer, at (917) 341-1837, or Allison Bishop, the Firm's President, at (917) 341-1677.

If you cannot access us through either of those means, you should contact our clearing firms, 1) Apex Clearing Corporation ("Apex"), 350 North St. Paul Street, #1300, Dallas, TX 75201, (213) 402-1570, www.apexclearing.com and 2) RBC Clearing and Custody ("RBC"), 250 Nicollet Mall, Suite 1700, Minneapolis, MN 55401, (612) 607-8801, www.rbcclearingandcustody.com, for instructions on how it may provide prompt access to funds and securities, reconcile transactions, and process other trade-related, cash and security transfer transactions*.*

PSL's BCP

PSL plans to quickly recover and resume business operations after an SBD, and respond by safeguarding the Firm's employees and property, making financial and operational assessments, protecting the Firm's books and records, and allowing the Firm's customers to continue transacting business with the Firm. In short, the Firm's BCP is designed to permit the Firm to resume operations as quickly as possible, given the scope and severity of the SBD.

PSL's BCP addresses: (i) data backup and recovery; (ii) all mission critical systems; (iii) financial and operational assessments; (iv) alternative communications with customers, employees, and regulators; (v) alternate physical location of employees; (vi) critical supplier, contractor, bank, and counterparty impact; (vii) regulatory reporting; and (vii) working with Apex and RBC to assure our customers prompt access to their funds and securities if we are unable to continue our business.

Our clearing firms, Apex and RBC, back 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 as quickly as possible, based on priority. Your orders and requests for funds and securities could be delayed during this period.

Varying Disruptions

SBDs can vary in their scope, such as only to PSL, a single building housing a Firm office, the business district where an office of the Firm is located, the city where a Firm office is located, or an entire region in which a Firm office is located. Within each of these areas, the severity of the disruption can also vary from minimal to severe. In a disruption to only the Firm or a building housing the Firm, the Firm's employees will work remotely from their residences when needed, and expect to recover and resume business within twenty-four (24) hours. In a disruption affecting the Firm's business district, city, or region, the Firm's employees will work remotely from their residences or transfer responsibilities, temporarily, to employees outside of the affected region, and seek to recover and resume business as quickly as possible. In either situation, the Firm plans to continue business operations, transfer operations to our clearing firm if necessary, and notify you through our website prooftrading.com of how to contact us. If the significant business disruption is so severe that it prevents us from remaining in business, we will work with Apex to assure our customers prompt access to their funds and securities.

For More Information

If you have questions about PSL's BCP, you can direct them to Daniel Aisen at (917) 397-3281 or psl@prooftrading.com

Rule 606 Disclosure


SEC Rule 606 requires broker-dealers that route orders in certain equity and option securities to make available reports that present a general overview of their routing practices. Proof Services LLC exclusively trades orders on a not held basis, and thus it does not produce quarterly 606(a) reports concerning held orders.

Proof Services LLC does however produce monthly reports concerning not held orders as per Rule 606(b)(3), and these reports are available for a given customer's order flow upon request.

IEX Rulebook


As per IEX Rule 8.110, Members of IEX shall make available a current copy of the IEX Rules for examination by customers upon request. The IEX Rulebook can be found here.

Additionally, customers of Proof Services LLC may request an electronic copy of the IEX Rulebook by emailing psl@prooftrading.com.

Privacy Policy

Last Updated: 1/30/2025

This privacy policy ("Policy") describes how Proof Trading, Inc. and its related companies ("Company") collect, use, and share personal information of clients who send orders in U.S. equities.


What We Collect

We get information about you and the orders you send to us in a range of ways.

Information You Give Us. We collect information from you directly for the purposes of Know You Customer, and we collect information about orders you send to us, whether directly or through third parties.

Information Automatically Collected. We automatically log information about your trading session and order activity. For example, we log information related to network connectivity, messages entering our trading system, messages sent internally within our trading system, messages exiting our trading system, etc.

Auxiliary Sources of Information. We may join information about your orders with other sources, including market data such as quotes and last sale reports from the SIPs or other market data feeds for purposes of analysis.

Sharing of Personal and Order-Related Information

We may share personal and order-related information as follows:

  1. We may share personal and order-related information with your consent. For example, you may let us share personal information with others for their own marketing uses. Those uses will be subject to their privacy policies.
  2. We may share personal or order-related information when we do a business deal, or negotiate a business deal, involving the sale or transfer of all or a part of our business or assets. These deals can include any merger, financing, acquisition, or bankruptcy transaction or proceeding.
  3. We may share personal or order-related information for legal, protection, and safety purposes
    1. We may share information to comply with laws.
    2. We may share information to respond to lawful requests and legal processes.
    3. We may share information to protect the rights and property of Proof Trading, Inc., our agents, customers, and others. This includes enforcing our agreements, policies, and terms of use.
    4. We may share information in an emergency. This includes protecting the safety of our employees and agents, our customers, or any person.
  4. We may share information with those who need it to do work for us.

Use of Personal and Order-Related Information

We use your personal information as follows:

  1. We use your personal and order-related information to operate, maintain, and improve our products and services.
  2. We use your personal and order-related information to respond to comments and questions and provide customer service.
  3. We use your personal and order-related information to send information including confirmations, invoices, technical notices, updates, security alerts, and support and administrative messages.
  4. We use your personal and order-related information to communicate about promotions, upcoming events, and other news about products and services offered by us and our selected partners.
  5. We use your personal and order-related information to protect, investigate, and deter against fraudulent, unauthorized, or illegal activity.
  6. We use your personal and order-related information to provide and deliver products and services customers request.

Sharing of Metrics

We may also share metrics with others that conform to our high scientific standard of data privacy as described in our Data Privacy Agreement. This standard ensures that any aggregate information that is released would have remained true even if any one particular client was removed from the analyses.

Information Choices and Changes

Our marketing emails tell you how to "opt-out." If you opt out, we may still send you non-marketing emails. Non-marketing emails include emails about your accounts and our business dealings with you.

You may send requests about personal or order-related information to our Contact Information below. You can request to change contact choices, opt-out of our sharing with others, and update your personal information.

Contact Information

We welcome your comments or questions about this privacy policy. You may also contact us at our address:

Proof Trading, Inc.
176 Broadway #15D
New York, NY 10038

Changes to This Privacy Policy

We may change this privacy policy. If we make any changes, we will change the Last Updated date above.

Clearing Arrangement Disclosure


PSL conducts business in equity securities only, and provides algorithmic trading solutions for institutional investors domiciled in the U.S. (the "Customers"). The Firm also engages in limited proprietary trading activities for testing and algo optimization purposes. The Firm does not trade on a proprietary basis against nor along-side its Customers.

The Firm is an introducing firm and does not perform any type of clearing function for itself or others. Furthermore, we do not hold Customer funds or securities. We accept and enter orders. All transactions are sent to our clearing firm, which compares them, allocates them, clears and settles them. Our clearing firm also maintains our Customers' accounts, can grant Customers access to them, and delivers funds and securities. Our Firm services only institutional Customers.

Our clearing firms are 1) Apex Clearing Corporation ("Apex"), 350 North St. Paul Street, #1300, Dallas, TX 75201, (213) 402-1570, www.apexclearing.com and 2) RBC Clearing and Custody ("RBC"), 250 Nicollet Mall, Suite 1700, Minneapolis, MN 55401, (612) 607-8801, www.rbcclearingandcustody.com

Risk Limits and Error Mitigation


The Proof Trading Platform was designed with several layers of logical and architectural protections to reduce the risk and impact of potential technology failures and trading errors. These protections include several types of risk checks that are configured on a per-client basis:

  • Max Aggregate Notional
  • Max Notional Per Order
  • Max Shares Per Order
  • Max Percent ADV Per Order

Additionally, the trading logic is designed with built-in protections such as anti-spin logic and order collars (2.5% from last sale for continuous market trading and 9% from last sale for auctions). These collars loosely mirror Limit Up Limit Down and are applied to all child orders, including those on behalf of market parent orders. In general, when the trading system gets into an unexpected state, it errs on the side of under-trading to minimize the chance of an erroneous execution.

For more information, please see Risk Management in Proof.

Proof Trading, Inc.
176 Broadway #15D
New York, NY 10038

Securities transactions are conducted through Proof Services LLC ("PSL"), a broker-dealer subsidiary of Proof Trading, Inc. Proof Services LLC is a member of FINRA and SIPC. Check the background of this Broker-Dealer and its registered investment professionals on FINRA's BrokerCheck.