Exhibit L – ABC, LLC

Attach a description of the measures or procedures employed by registrant to provide for the safeguarding of securities and funds in its custody or control. Identify any instances within the past year in which the described security measures or safeguards failed to prevent any unauthorized access to securities or funds in possession of registrant and any measures taken to prevent a recurrence of any such incident.

ABC safeguards its members’ securities and funds to minimize the risk of loss of those assets. ABC accomplishes this safeguarding through the use of settlement banks, custodians, and other financial service providers. These institutions are large, reputable organizations, and ABC conducts routine due diligence reviews to ensure its settlement banks and custodians employ adequate accounting and safekeeping procedures. 

In April 20XX, a group of criminals stole $50,000 of one clearing member’s funds. ABC worked with the financial institution at which those funds were being held, along with law enforcement officials, to track down and ultimately return the stolen funds to the clearing member.  

ABC has terminated its contract with the financial institution at which the stolen funds were held and has replaced it with a financial institution that has a longer track record of safeguarding funds.