Dear Valued Mastertrader.com Trader,

Mastertrader.com would like to inform you of recent changes in the rules regarding the short validation and “tick test”.

• The Securities and Exchange Commission (SEC) announced on June 28, 2007 that short sale validation will be eliminated with a Compliance Date of today, July 6, 2007.
• NASDAQ will eliminate short sale validation on July 6, 2007.
• The SEC announced on June 13, 2007, that it has voted to eliminate Rule 10a-1 as well as any short sale price test of any self-regulatory organization (SRO), i.e., the “Tick” Test.

An informative summary of the changes can be found on the Nasdaq Trader web site at: http://www.nasdaqtrader.com/trader/news/2007/regulatoryalerts/ra2007-067.stm

In general, the new rule changes mean that you can sell short all stocks on the bid, without having to wait for an up-tick or tick test. Stocks still need to be “borrowable”. You can check to see what stocks are available to short on our web site at: http://www.mastertrader.com/ShortList/. If a stock you would like to short comes up unavailable on our Short Sale Availability Search Utility, and you would like us to try and locate shares for you manually, please call 914-422-2966.

Please feel free to contact us with any questions.

Mastertrader.com
www.mastertrader.com
Toll Free 800-424-3934
Local & Int’l 914-422-2966

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