TradeStation SPAC Presentation Deck
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Risk Factors (Cont.)
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Self-directed investment and trading for retail customers is a fast-changing industry with many new challengers and technologies, and if we do not keep pace with industry and technological changes and innovation and continue to
provide new and innovative products and services, including those that enable us to create or retain a differentiated position in the market, our business may become less competitive and may be materially and adversely impacted.
Our introduction of new products and services, or changes to existing products and services, could fail to attract or retain customers or generate growth and revenue.
The continuing and long-term impact of the COVID-19 pandemic on our business, financial condition and results of operations is uncertain and may be materially adverse.
Risks Related to Our Equities, Options and Futures Brokerage Products and Services
If we do not maintain our capital levels, or do not satisfy our cash deposit, collateral, custody, liquidity and settlement obligations, as required under applicable laws, rules and regulations and by applicable regulators, our equities,
options and futures brokerage businesses may be restricted and we may be fined or subject to other disciplinary or corrective actions or even potentially being liquidated or wound down.
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We conduct our brokerage and other business operations through subsidiaries and rely primarily on dividends from our subsidiaries for our cash flows.
Future acquisitions of, or investments in, other companies, products, technologies or specialized employees, should we decide to engage in such transactions, could require significant management attention, disrupt our business, dilute
shareholder value and adversely affect our business and operations.
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We are exposed to various risks associated with our non-U.S. business, including, among others, the failure to maintain all necessary approvals, consents, licenses or registrations required to operate such non-U.S. business, unexpected
changes in regulatory requirements, expropriations, fluctuations in currency exchange rates, limitation on the import and export of currency, and political, social and economic instability.
Unfavorable media coverage, both traditional and social, could harm our business, financial condition and results of operations.
We operate in highly competitive markets, and many of our competitors have greater resources than we do and may have products and services that may be more appealing than ours to our current and potential customers.
Our growth will depend, in part, on the success of our important relationships with third parties, including critical vendors and third-party relationships related to marketing, lead referrals and account growth. Overreliance on certain
third parties, or our inability to maintain or extend existing relationships or establish to new relationships on favorable terms or at all, may cause unanticipated costs or decreased account growth and revenue for us, negatively impact
client awareness of, or engagement with, us and impact our financial performance in the future.
Our compliance and risk management policies and procedures as a regulated financial services company may not be fully effective in identifying or mitigating noncompliance and risk exposure in the market environments or against all
applicable types of risk, and we may be required to expend considerable time and cost to expand our compliance and risk infrastructure.
Our exposure to credit risk with customers and counterparties could result in uncollectable unsecured debits and counterparty obligations and other potentially unrecoverable losses owed to us.
Providing investment education tools could subject us to additional risks and costs, including reputational and litigation risks, and if such tools are construed to be investment advice or recommendations, we would face significant cost
and disruption to our business.
Our peer-to-peer and similar social communities and forums, which we intend to expand, may subject us to additional risks and compliance obligations and costs, in particular in areas such as investment advice, trade solicitation and
market manipulation, which each would require substantial ongoing monitoring and review, at potentially significant costs, to try to prevent or mitigate inappropriate conduct in those areas.
Applicable regulators have publically expressed a focus on peer-to-peer and similar social communities and forums in our industry, and may disagree with the appropriateness of the activities in such communities and forums, make
costly inquiries and investigations, issue adverse guidance or interpretations or take detrimental enforcement actions.View entire presentation