Customer Asset Protection Company ("CAPCO") was formed in late 2003 to provide securities account protection for institutional and individual brokerage accounts of certain securities firms over the protection limits currently provided by the Securities Investor Protection Corporation ("SIPC") in the United States. CAPCO issued its first surety bond in early 2004.

The excess protection (sometimes referred to as "Excess SIPC") is provided to the securities affiliates of the 12 participants in the form of bonding coverage. This protection would be triggered only in the event of the financial failure and liquidation of a participating securities affiliate and if the customerâs securities are not returned. This protection does not cover investment losses in customer accounts due to market fluctuation or other claims for losses incurred while these securities affiliates remain in business. The protection is also not triggered unless the customer's account exceeds the limits of account protection provided by SIPC. Other restrictions apply as contained in the applicable bond.