Found on the Website - A message from Charles R. Schwab
Total Customer Access Promise
A message from Charles R. Schwab, Chairman
Dear Investor:
Recently, you may have experienced delays or difficulty in reaching Schwab as investors
throughout America experienced difficulties in reaching virtually all brokerage
firms...discounters, full commission, and online due to the unprecedented market activity. As
a fellow investor, I understand the frustration you may have felt, and we regret the
inconvenience you may have experienced.
In the past week, we have all been a part of history. On Monday, October 27, we saw the
Dow and NASDAQ suffer their biggest point declines ever, only to recover the following
day with record gains and over 1.2 billion shares trading on the NYSE. The Exchange had
prepared for a doubling of volume and we had prepared for a tripling of volume. Indeed,
thanks to our dedicated employees and our multiple service channels we were able to
handle 1.5 million customer interactions - over triple our normal volume.
Our learning experience, however, was that in time of extreme market volatility, a doubling
of NYSE trading may actually produce a five-fold increase of customer demand for
information and trading access. Our goal therefore will be to build processes that allow us to
expand capacity even more dramatically than we can today.
While events of late October showed us that technology works we also recognize that our
branches can provide an important cornerstone to our Total Customer Access plan.
Therefore, in the future, if heavy market activity forces extended customer hold times* or
busy signals of over five minutes, we will encourage all Schwab customers to consider using
our branches where we will take trades and waive commissions up to a maximum total of
$500 per customer under our new Total Customer Access Promise. We hope this isn't
necessary, but markets have always experienced intermittent volatility and if you are
inconvenienced and need to travel to our branch that day to place your trade, your
commissions will be waived.*
As a valued customer, I want to assure you that Schwab will continue looking at ways to
further increase your access to us during unusual market activity. We are committed to
providing you the best service possible and we appreciate your continued business.
Sincerely,
Charles R. Schwab
Chairman
*During NYSE market hours, 9:30a.m. - 4:00p.m. EST, when a majority of Schwab
customers experience longer than five minute Schwab system wait times. Schwab reserves
the right to end this offer at any time without prior notice. Schwab or an affiliate may trade
as a principle.
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