BUSINESS CONTINUITY SUMMARY

As part of our ongoing commitment to our clients, this will serve to provide you with an overview regarding the Lightspeed Trading, LLC ("Lightspeed") 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

Lightspeed 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 identifying methods to protect and restore critical business processes, records, data and systems to allow customers to transact business. Lightspeed relies on a third party provider for customer records, transactions, custody of funds and securities and operating systems. The third party provider has a business continuity plan with system redundancy and back-up facilities.

• 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

In the event of a business interruption, Lightspeed 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 Lightspeed BCP is designed to enable the firm to be operational within 24 hours or less after a business interruption assuming that third party providers and industry critical systems are operational.

Updates and Information Requests

The Lightspeed 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 Lightspeed BCP summary plan, please submit a written request to:

Lightspeed Trading LLC
Attn: Compliance Department
One Jericho Plaza
Jericho, N.Y. 11753

Lightspeed will continue to promptly post modifications and updates to the BCP on the website located at www.schonfeld.com. In the event of a business interruption, customers may contact us at 646.393.4800.