Dear Valued Trader:

Starting with this month’s options expiration on Saturday, June 21st, 2008, new procedures will go into effect regarding options exercises. Under the new expiration procedures, options that are in the money at expiration equal to or more than the specified threshold amount are exercised automatically unless instructions are sent to Mastertrader.com before 3 pm ET on the Friday before expiration. For equity options, the threshold amount will be reduced from $.05 to $.01 for all account types.

For example, if you have an equity options position which is in-the-money by $.01 on Friday, June 20th, the position will be automatically exercised unless we are instructed to do otherwise by 3pm ET.

To read the announcement from The Options Clearing Corporation please go to: http://www.mastertrader.com/occ.asp

This procedure will be in effect beginning with the June 2008 expiration month. If you have questions or need assistance please feel free to call or email us.

Thank you for your attention to this matter,

Mastertrader.com
7-11 South Broadway, Suite 210A
White Plains, NY 10601

The risk of loss in electronic trading can be substantial. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. System access and trade executions may be delayed or fail due to market volatility, system failure, high volume or other factors. To read important disclosures, click on the following four links Day Trading Risk Disclosure, Margin Disclosure, Futures Risk Disclosure and the Characteristics and Risks of Standardized Options.