Broker-Dealer Messaging Compliance

SEC Filings

What Legal Documentation needs to be filed with the SEC/NASD? As part of your Broker-Dealer compliance solution, you may request Global Relay to prepare the SEC-mandated filings. Additionally, your firm has the option to engage Global Relay as your Third Party Downloader and Global Relay's in-house compliance lawyers will file the required Third Party Downloader Undertaking with the SEC/NASD.

SEC Rule 17a-4 Message Archiving Compliance Solution

In order to simplify and expedite your compliance process regarding SEC Rule 17a-4, NASD Rule 3110 and/or NYSE Rule 440, upon request, the following Broker-Dealer Legal Compliance Documentation may be prepared by our in-house compliance lawyers:

SEC Rule 17a-4(f)(2) Documentation and Instructions four customized legal documents and corresponding compliance instructions relating to each legal document:

1. Electronic Storage Media Notification Letter (SEC Rule 17a-4(f)(2)(i)) - this Notification is sent by your firm to the SEC and your Designated Examining Authority (DEA) providing notice that your firm is implementing Global Relay's Message Archiver service to meet the message archive requirements;
2. Legal Direction and Authorization for Third Party Downloader (SEC Rule 17a-4(f)(3)(vii)) - this legal document appoints Global Relay as your impartial third party that has independent access to, and the ability to download the archived electronic records of your firm, if required upon request by the SEC or your DEA;
3. Third Party Downloader Undertaking Letter (SEC Rule 17a-4(f)(3)(vii)) - Global Relay, as your firm's appointed Third Party Downloader, will submit a copy of an Undertaking Letter to the SEC and your DEA to identify itself as being your firm's Third Party Downloader; and
4. Representation Letter attesting to Electronic Storage Media Compliance (SEC Rule 17a-4(f)(2)(ii)(A)-(D)) - this Letter is sent by your firm to the SEC and your DEA attesting that Global Relay's Message Archiver, as an outsourced electronic archival service provided to your firm, meets the SEC compliance requirements including:
   • SEC Rule 17a-4(f)(2)(ii)A - WORM Storage Media
   • SEC Rule 17a-4(f)(2)(ii)B - Message Write Quality & Accuracy Verification
   • SEC Rule 17a-4(f)(2)(ii)C - Message Serialization of Original & Duplicates
   • SEC Rule 17a-4(f)(2)(ii)D - Index & Record Downloading.

The following describes how Global Relay's Message Archiver in fact meets the compliance requirements that your firm must attest to complying with in the Representation Letter to the SEC and your DEA:

SEC Rule 17a-4(f)(2)(ii)(A)-(D) Global Relay's Technical Solution

Worm Storage Media(f)(2)(ii)(A)

Preserve the records exclusively in a non-rewriteable, non-erasable format

Global Relay's Message Archiver archives a permanent copy of all messages, including attachments, to near-online storage (NOS) using dedicated WORM (write once, read many) drives, eliminating the risks associated with lost, modified or deleted data.

Message Write Verification (f)(2)(ii)(B)

Verify automatically the quality and accuracy of the storage media recording process

Global Relay's Message Archiver automatically verifies the quality and accuracy of the storage media recording process as email messages and attachments are written to the Message Archiver primary and secondary file storage systems. The quality and accuracy of the write-verification recording processes is ensured through data comparison. As messages are processed, the Message Archiver automatically compares the post-processed message with the original message before the original email is deleted. The Message Archiver also provides automated 7 day external storage as an added level of redundancy in the write-verification process.

Message Serialization (f)(2)(ii)(C)

Serialize the original and, if applicable, duplicate units of storage media, and time-date for the required period of retention the information placed on such electronic storage media.

Global Relay's Message Archiver ensures that all messages are serialized and duplicated with identical copies written to both the primary online storage and the Storage Robot, our secondary near-online storage (NOS) for the Retention Period in our mirrored Data Centers. Also, each serialized message is time-dated to ensure compliance with specified retention schedules and for eDiscovery purposes. Any message can be retrieved within seconds by serial number.

Index Download (f)(2)(ii)(D)

Have the capacity to readily download indexes and records preserved on the electronic storage media to any medium acceptable under this paragraph (f) as required by the Commission or the self-regulatory organizations of which the member, broker, or dealer is a member.

Global Relay's Message Archiver automatically preserves all messages indexes and messages, and is able to make such data readily available for online access and viewing by authorized Users (such as the SEC/DEA). Also, indexes and messages may be downloaded as files, forwarded by email or printed directly from any secure web browser connected to the Internet or downloaded to DVD.

Questions relating to the Broker-Dealer Legal Compliance Documentation may be directed to legal@globalrelay.net.