Last updated: June 22, 2025
This No Regulatory Oversight Disclosure (“Disclosure”) explains the regulatory status of Abra Securities (“we,” “us,” “our”) and the implications for clients (“you,” “your”) engaging our discretionary U.S. equities and options trading services. By using our platform or signing our trading agreement, you acknowledge and agree to the terms herein.
1. Unregistered Entity Status
1.1 Non–Broker–Dealer & Non–Advisor
- Abra Securities is a privately held trading firm executing discretionary strategies on client capital. We are not registered with the U.S. Securities and Exchange Commission (SEC) as a broker–dealer under the Securities Exchange Act of 1934.
- We are not registered with the Commodity Futures Trading Commission (CFTC) as a futures commission merchant (FCM), swap dealer, or swap participant.
- We do not hold an investment‐advisor registration under the Investment Advisers Act of 1940 and do not provide regulated “advisory” or “fiduciary” services.
1.2 No FINRA Membership
- We are not a member of the Financial Industry Regulatory Authority (FINRA), nor do we participate in FINRA’s arbitration or mediation forums.
1.3 No SIPC or FDIC Protection
- Assets traded via Abra Securities are not protected by the Securities Investor Protection Corporation (SIPC).
- Cash or cash‐equivalent balances held in omnibus or custodial accounts are not insured by the Federal Deposit Insurance Corporation (FDIC).
2. Implications for You
2.1 No Regulatory Safeguards or Recourse
- You will not benefit from the consumer protections, dispute‐resolution procedures, or segregation requirements that apply to registered broker–dealers or FCMs.
- In the event of a dispute or claim against Abra Securities, your recourse is limited to contractual remedies under your trading agreement and applicable civil courts; FINRA arbitration or SEC/CFTC complaint processes are not available.
2.2 Counterparty Credit Risk
- Because Abra Securities is unregulated, you bear the credit risk of our ongoing financial viability. Should we become insolvent or cease operations, your assets or claims may be discharged, delayed, or subordinated in any bankruptcy or insolvency proceeding.
- We maintain internal capital and risk controls, but these are not subject to external regulatory capital adequacy examinations or public disclosures.
2.3 Lack of Standardized Disclosures
- We are not required to file standardized financial or operational reports (e.g., SEC Form BD, FOCUS reports, or CFTC Part 1/Part 3 reports).
- You will receive reporting and transparency solely under the terms of our client agreement, not through publicly accessible filings or regulatory databases.
3. Compliance & Self-Regulation
3.1 Internal Policies & Audits
- Although not subject to external oversight, we have adopted robust internal policies—covering trade handling, risk management, cybersecurity, and client onboarding—to mirror best practices in regulated environments.
- We engage independent third‐party auditors annually to review our controls against ISO 27001, SOC 2, and relevant international standards.
3.2 Voluntary Code of Conduct
- We subscribe to a voluntary ethics charter, committing to integrity, fairness, and transparency in all trades and client interactions.
- Our senior management provides attestation letters to clients on request, confirming adherence to these principles.
3.3 Client Reporting & Transparency
- We provide clients with daily and monthly statements detailing positions, P&L, trade execution details, fees, and any financing or margin charges.
- Custom reporting can be arranged under separate service agreements, including analytics on execution quality, trade compliance, and platform uptime.
4. Acknowledgment & Acceptance
4.1 Your Responsibility
- Before engaging our services, you must understand that Abra Securities operates outside traditional regulatory frameworks.
- You should evaluate whether the protections typically afforded by regulated brokers–dealers, or advisors are necessary for your investment objectives.
4.2 Contractual Reliance
- Your sole remedies in the event of error, dispute, or financial loss are those set forth in our Client Trading Agreement, Master Services Agreement, or equivalent contractual documents.
4.3 Consent
- By submitting orders, transferring capital, or otherwise utilizing our platform, you confirm your acknowledgment of this Disclosure and your acceptance of the associated risks and limitations.
Contact for Further Information
If you have questions regarding our regulatory status, controls, or client protections, please contact our Legal & Compliance team:
- Email: info@abrasecurities.com
End of No Regulatory Oversight Disclosure
