Customer Segregated Funds

HOW WE USE YOUR FUNDS

Your funds are kept separate from Phillip Capital house funds (Phillip Capital does not do any proprietary trading). This is accomplished by depositing customer funds and customer funds only in special bank accounts called segregated accounts. These segregated bank accounts are required by industry regulators and have been created by Phillip Capital in order to further protect customer funds. Phillip Capital utilizes its own non-trading monies to maintain a targeted residual of funds in these bank accounts.

WHAT DOES THIS MEAN?

While your assets are segregated, all customer segregated funds may be commingled in a single account and held with:

(i) a bank or trust company located in the US;

(ii) a bank or trust company located outside of the US that has in excess of $1 billion of regulatory capital;

(iii) a futures commission merchant; or

(iv) a derivative clearing organization.

Such commingled account must be properly titled to make clear that the funds belong to, and are being held for the benefit of, the FCM's customers.

WHAT HAPPENS TO YOUR FUNDS WHILE THEY ARE SEGREGATED?

Industry regulators allow Phillip Capital to invest the funds you maintain in these segregated bank accounts. However, Phillip Capital only invests these funds in assets which Phillip Capital determines are highly liquid, such as in cash at banks, cash at clearing houses, US Treasuries, and high-quality liquid Money Market Funds.unds.