BUSINESS CONTINUITY SUMMARY

As part of our ongoing commitment to our clients, this will serve to provide you with an overview regarding the Schonfeld Securities, LLC ("Schonfeld") Business Continuity Plan ("BCP").

Business Purpose

On April 7, 2004, the Securities and Exchange Commission approved NASD Rules 3510 and 3520 which require member firms to create and maintain a business continuity plan. A business continuity plan is a plan that will enable the firm to continue its business operations in the event of a significant business interruption

Business Continuity Components

Schonfeld has evaluated the impact of business interruptions resulting from various events including, but not limited to, loss of facilities and resources. The BCP was developed by requiring each business division to assess its business continuity risk. This review included all aspects of Schonfeld's key activities including, but not limited to, trading, sales, settlement, clearance, custody and funding. This review defined, for each business, its importance, exposure to risk and probability of failure.

The Schonfeld BCP addresses the following key elements:

• Data Back-Up and Recovery
• Identification of Mission Critical Systems
• Financial and Operational Assessments
• Alternate Communications with Customers
• Alternate Communications with Employees
• Alternate Physical Location of Employees
• Impact of Critical Business Counter-Parties
• Regulatory Reporting
• Communications with Regulators
• Customer Access to Funds and Securities

Recovery Plan

Schonfeld developed a plan, by business unit, to alleviate interruptions of processes that were considered critical. Critical data and system applications have been duplicated, and alternative systems and procedures, including manual processes, have been identified to enable continued functionality in the case of a business interruption.

In the event of a business interruption, Schonfeld has established a data recovery plan as well as a staff and workspace recovery plan. The data recovery plan includes maintenance of redundant real-time system facilities located outside of Long Island and Manhattan. The staff and workspace recovery plan includes the relocation of critical personnel to alternate sites. The Schonfeld BCP is designed to enable the firm to be operational within 24 hours or less after a business interruption assuming that industry critical systems are operational.

Updates and Information Requests

The Schonfeld BCP will be reviewed and tested annually at a minimum. Modifications and updates will be made to incorporate any material business change or regulatory requirement. To obtain a copy of the Schonfeld BCP summary plan, please submit a written request to:

Schonfeld Securities, LLC
Attn: Compliance Department
One Jericho Plaza
Jericho, N.Y. 11753

Schonfeld will continue to promptly post modifications and updates to the BCP on its website located at www.schonfeld.com.