New Procedures Concerning Short Option Positions

Note from our clearing firm Vision Financial Markets, LLC concerning Short Options on Equity Options

Visionviews the initiation of new short option positions in the equity option marketsentered and executed on the day of option expiration as a high risk, low rewardstrategy. Effective Friday, March 21, 2014 Vision will no longer allow accountsto initiate new short option positions on the day of option expiration. Any breaches of this policy could result in the account holder beingsubject to various penalties by Vision. Penalties may include theforfeiture of profits from these trades, increases in clearing rates and/orother monetary penalties.

Anotherarea of concern for Vision is the speculative trading in short option positionsin the days preceding equity option expiration. Any account that goes ona margin call in the five days preceding equity option expiration must meetthat call with cash or T-Bills on day one. If the call is not metas described above, account owners will be subject to a margin call interestcharge at the rate of prime plus 5%, for any day(s) such margin call deficiencyshall exist. This policy goes into effect on April 1, 2014.

Weappreciate your cooperation in regards to these new procedures concerning shortoption positions. Should you have any questions or need further clarificationon these changes, please contact Vision’s Margin Department.